Breeding is variable and dependent on rain. The Cockatiel breeding season usually last from August to December, although breeding can occur anytime of the year after rainfall. Nests are usually found in hollow limbs or tree holes, preferably in large hollow eucalyptus near water. Decayed wood dust lines the inside and bottom of the nest hole. A Cockatiel lays from four to seven white rounded eggs.
Egg laying occurs every other day.
There average egg size is 26x20 mm. Incubation last twenty-three days and both parents brood. The young leave the nest approximately four weeks after hatching. At six months the young males acquire the bright yellow facial markings. Their barred tails are retained until their first complete molt.