In recent years there has been an increased interest in studies related to the welfare of avian species commonly kept as companion animals, specifically those in the order Psittaciformes, commonly referred to as ‘parrots’. During this time the biology and behaviour of wild parrots has also become better understood, aiding the assessment of welfare in captive environments. The impact of the pet trade on wild parrot populations has also become clear. This order now has more globally threatened species than almost any other major group of birds. Many significant aspects of parrot behaviour in the wild, such as flocking, social interaction with conspecifics, foraging on a variety of foods and flight, are denied to varying degrees to parrots kept as companion animals. Captive parrots show high levels of stereotypy, suggesting poor welfare. Welfare may be improved by appropriate environmental enrichment and changes in the social environment of captive parrots kept as companion animals; however, such changes require that caretakers have sufficient knowledge, resources and motivation to accommodate such conditions. The concept of companion animal suitability is an important consideration when developing regulations or policy aimed at improving the welfare of animals kept as companions. Although individual exceptions exist and the level of suitability may vary depending on species, in general, their presence in the pet trade has resulted in serious animal welfare and conservation challenges for parrots, indicating that these animals may be unsuitable as human companions.

Previously assumed to be unintelligent animals, many species of birds display high levels of cognition and may even possess conscious awareness. In particular, both corvids and parrots have been the focus of cognitive research including studies on problem-solving, social intelligence, and sentience. Despite their similar neural architecture and cognitive abilities, the laws regarding these two families of birds differ greatly. In the United States, it is illegal to keep corvids as pets. Parrots, however, are one of the most commonly kept pets in America, although their care in captivity remains largely unregulated. Captive parrots suffer from a number of medical and psychological issues and experience high rates of neglect and abandonment. At the same time, wild parrot populations are dwindling due both to habitat loss and capture for the pet trade. This review examines the novel findings on avian cognition and applies them to the potential ethical implications of keeping parrots in captivity. In addition, suggestions for future directions are presented, including the development of legislation to protect captive and wild parrots.