Oriental small-clawed otters are diurnal animals (active during the day), found in remote areas, free of human disturbance. However, some have adapted to life near villages. They continually groom their fur to maintain its insulating qualities.

Usually after swimming or feeding, this species will rub themselves against logs and vegetation around their territory so that they can leave their scent. This is called 'scent marking'. They also produce small amounts of feces, known as spraint. The spraints are important for communication among the otters; those with different smells and appearance indicate the presence of strangers. Generally, the otters sleep and rest on land either above ground or in their dens. They often sleep in areas with moderate disturbance. Oriental small-clawed otters are mostly social animals. They live in extended family groups of about 12 individuals. They are often seen playing (which can be seen at zoos) and sliding on muddy banks and in the water in regions where they frequently visit or live. They defend their territories by working, scratching and occasionally fighting.