The species inhabits the Fynbos and Succulent Karoobiomes at altitudes ranging from 5 to 1358 m above sea level. Xerophaeus capensis are free-living ground dwellers and have been sampled from vineyards as well as natural habitats.
The species was originally described by W. F. Purcell in 1907 from Devils Peak in Cape Town. Tucker synonymized Xerophaeus delphinurus and X. interrogator, both described by Purcell in 1907, with this species. The species has not been revised but is known from both sexes.