While this fish spawns under rocks or in crevices in the wild, it readily breeds in shells in captivity. The fry normally stay near the spawn site, and multiple generations of spawns are often tolerated.
Very similar to the Neolamprologus leloupi, they can be differentiated as follows; the caudopunctatus has three vertical stripes that extend to the ventral half of the body, while the leloupi has a checkboard pattern.
In the wild they dine on small live food found in the substrate and plankton in the open water. In the aquarium a diet of mysis shrimp, cyclops, mosquito larvae, flakes and pellets will be satisfactory.