They are nocturnal predators, and generally hide in crevices during the day. The jaws are fused together into a single unit, creating a strong, beak-like mouth capable of cracking the shells of snails, sea urchins, and hermit crabs. The balloonfish also has a pelagic, or open-ocean, life stage. Reproduction occurs when males slowly push females to the water surface, where they immediately spawn. The eggs are spherical, bouyant, and float in the water.
Hatching occurs roughly after four days.
The larvae are predominately yellow with scattered red spots. They are well developed with a functional mouth, eyes, and gas bladder. Larvae less than ten days old are covered with a thin shell. After those first ten days the shell is lost and the spines begin to develop. The larvae undergo a metamorphosis approximately three weeks after hatching.