The Iberian lynx is smaller than its northern relatives, and typically hunts smaller animals, usually no larger than hares. It also differs in habitat choice, with Iberian lynx inhabiting open scrub and Eurasian lynx inhabiting forests.

This lynx was distributed over the entire Iberian Peninsula as recently as the mid nineteenth century. It is now restricted to very small areas, with breeding only confirmed in two areas of Andalucia, southern Spain. The Iberian lynx prefers heterogeneous environments of open grassland mixed with dense shrubs such as strawberry tree, mastic, and juniper, and trees such as holm oak and cork oak. It is now largely restricted to mountainous areas, with only a few groups found in lowland forest or dense maquis shrubland.

During the mating season the female leaves her territory in search of a male. The typical gestation period is about two months; the cubs are born between March and September, with a peak of births in March and April. A litter consists of two or three (rarely one, or four to five) kittens weighing between 200 to 250 grams (7.1 to 8.8 oz).

The kittens become independent at 7–10 months old, but remain with the mother until around 20 months old. Survival of the young depends heavily on the availability of prey species. In the wild both males and females reach sexual maturity at one year old, though in practice they rarely breed until a territory becomes vacant; one female was known not to breed until five years old when its mother died. The maximum longevity in the wild is 13 years.

Siblings become violent towards one another between 30 and 60 days, peaking at 45 days. A cub will frequently kill its littermate in a brutal fight. It is unknown why these episodes of aggression occur, though many scientists believe it is related to a change in hormones when a cub switches from its mother's milk to meat.