We provide new information on the breeding and feeding behaviour of Squirrel Cuckoo Piaya cayana, describing 16 nests found in 1987–2017 at two Atlantic Forest localities, in Minas Gerais and Alagoas (Brazil). In these areas, the species was observed at edges of primary and secondary forests, and beside rivers and wetlands. Nests were placed in the forest understorey in bushes or trees, and were camouflaged by lianas or dry branches. Clutch size varied from one to three eggs. Chicks had white mouth markings, described herein for the first time, and fledged before being able to fly. The breeding season varied between localities. In Minas Gerais, Squirrel Cuckoo appears to breed during the rainy season, while in Alagoas it may nest year-round.