Parrots that are bred for pets may be hand fed or otherwise accustomed to interacting with people from a young age to help ensure they will be tame and trusting.

However, parrots are not low maintenance pets; they require feeding, grooming, veterinary care, training, environmental enrichment through the provision of toys, exercise, and social interaction (with other parrots or humans) for good health.

Some large parrot species, including large cockatoos, Amazons, and macaws, have very long lifespans with 80 years being reported and record ages of over one hundred.

Small parrots, such as lovebirds, hanging parrots, and budgies have shorter life spans of up to 15–20 years. Some parrot species can be quite loud, and many of the larger parrots can be destructive and require a very large cage, and a regular supply of new toys, branches, or other items to chew up.

The intelligence of parrots means they are quick to learn tricks and other behaviors — both good and bad — that will get them what they want, such as attention or treats. The popularity, longevity, and intelligence of many of the larger species of pet parrots has led to many of these birds being re-homed during the course of their long lifespans.

A common problem is that large parrot species which are cuddly and gentle as juveniles will mature into intelligent, complex, often demanding adults that can outlive their owners. Due to these problems, and the fact that homeless parrots are not euthanized like dogs and cats, parrot adoption centers and sanctuaries are becoming more common.

The popularity of parrots as pets has led to a thriving — and often illegal — trade in the birds, and some species are now threatened with extinction. A combination of trapping of wild birds and damage to parrot habitats makes survival difficult or even impossible for some species of parrot. Importation of wild caught parrots into the US and Europe is illegal.

The trade continues unabated in some countries. A report published in January 2007 presents a clear picture of the wild-caught parrot trade in Mexico, stating: "The majority of parrots captured in Mexico stay in the country for the domestic trade.

A small percentage of this capture, 4% to 14%, is smuggled into the USA." In the early 1980s an American college student who worked his way through school smuggling parrots across the Rio Grande put his contraband Mexican birds in a cage on an inflatable raft and floated with them across the international river to the U.S. side where a partner would be waiting.