Degus are highly social. They live in burrows, and, by digging communally, they are able to construct larger and more elaborate burrows than they could on their own. Degus digging together coordinate their activities, forming digging chains. Females living in the same group have been shown to spontaneously nest communally; they nurse one another's young.

Degus are herbivores, feeding on grasses and browsing the leaves of shrubs, though they will also take seeds.

Degus have become popular as pets, though until very recently they were seldom found in pet shops. Their advantages over traditional small pets are their diurnal habits, bubbly personalities, the haired tail (as compared to rats and mice) and their lifetime: they are said to live up to 13 years under ideal circumstances.