The sloth bear's global range includes India, the southern lowlands of Nepal, and Sri Lanka. They have formerly been reported in Bangladesh and Bhutan but are now considered regionally extinct in those areas.

Sloth bears have the longest tail in the bear family, which can grow up to 7 inches (18 cm) long.

Sloth bears locate termites by smell. On arriving at a mound, they scrape at the structure with their claws till they reach the large combs at the bottom of the galleries, and disperse the soil with violent puffs. The termites are then sucked up through the muzzle, producing a sucking sound which can be heard 180 meters (590 feet) away.

It has also been called the "labiated bear" because of its long lower lip and palate used for sucking insects.

Adult sloth bears are missing their top two front teeth (incisors), which enables them to suck up termites and other insects with ease.

Although Baloo is described in Kipling's work as "the sleepy brown bear", Daniel Karlin, who edited the reissue of The Jungle Book in 1987, states that, with the exception of color, Kipling's descriptions of Baloo are consistent with the sloth bear, as brown bears and Asian black bears do not occur in the Seoni area where the novel takes place.

Sloth bears were trained by Qualanders, a nomadic group that roamed India and entertained crowds with performing animals and circus acts, and were the original dancing bears.

Asian elephants apparently do not tolerate sloth bears in their vicinity. The reason for this is unknown, as individual elephants known to maintain their composure near tigers have been reported to charge bears. The Indian rhinoceros has a similar intolerance for sloth bears and will also charge on sight.

The average lifespan of the sloth bear is estimated to be 20 years in the wild. However, sloth bears in captivity have lived as long as 40 years.

Sloth bears grow up to 6 feet in length, and males can weigh up to 320 pounds.