Habitat loss and degradation are the principle threats to Microhierax melanoleucus.
The Pied falconet can be found in Bangladesh, China, India, Laos and Viet Nam.
The proposed dam Nam Theun 2 hydroelectric project on the Nakai plateau in Khammouane province in central Laos, is threatening the Pied falcon habitat. When completed the Nam Theun reservoir will cover an area of 450 square kilometers or approximately 40% of the Nakai Plateau.
The IUCN considers Microhierax melanoleucus as a "Lower Risk" sub-category "near threatened". CITES lists the species as "Appendix 2".