The Yellow Wattlebird nests in breeding pairs which aggressively defend their breeding territories against other birds. The female alone constructs the open, bowl-shaped nest of thin twigs, bark and grass, lining it will bark, roots, grass and mammal fur or wool. The nest is placed about 3 m - 20 m above the ground, often in an exposed tree fork, usually in eucalypts. Both sexes incubate the eggs and feed the young, continuing to feed fledglings for a few weeks. In coastal areas two broods may be raised in the one season, while in central areas usually one brood is raised.