A companion parrot is a parrot kept as a pet that interacts abundantly with its human keeper. Parrots are among the most popular companion birds worldwide, but most species are not domesticated and retain the complex behavioural and environmental needs of wild parrots, including flocking, social interaction, varied foraging and regular flight. Reviews of parrot welfare report that many companion parrots develop problems such as stereotypic behaviour, feather damaging and chronic stress when these needs are not met, and that their suitability as pets is often limited by these welfare concerns.

Species of parrots that are kept as companions include large parrots, such as amazons, greys, cockatoos, eclectuses, hawk-headed parrots, and macaws (including hybrids like the Catalina macaw); mid-sized birds, such as caiques, conures, Quaker parrots, cockatiels, Pionus, Poicephalus, rose-ringed parakeets, and rosellas; and many of the smaller types, including budgies, Brotogeris, parakeets, lovebirds, parrotlets and lineolated parakeets.

Some species of lories and lorikeets are kept as pets but are quite messy, and often more popular as aviary birds. Hanging parrots and fig parrots are normally kept as aviary birds and not as pets. Some species of parrots such as pygmy parrots, kākāpōs, night parrots, and about half of the species of parrotlets, are not considered companion parrots due to difficult dietary requirements or lack of availability.

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) lists most parrot species in its appendices and restricts international trade in wild-caught birds. Commercial trade in wild individuals of Appendix I species is prohibited, while Appendix II and III species may be traded only under permit systems intended to ensure that exports are not detrimental to wild populations. In some range countries, abundant species such as the monk parakeet are also subject to lethal control programmes because they are treated as agricultural pests.

With the right home, parrots have the potential to make excellent, highly interactive, affectionate, and entertaining pets prized by their owners, but should not be considered easy care or low-maintenance pets. Tame companion parrots require daily attention and interaction with their owners, and need to be housed in a cage at least large enough to allow the bird to spread their wings and move about comfortably. Companion parrots also need to be fed a diet that includes fresh vegetables and fruits, and a smaller amount of seeds and grains; dietary requirements vary with species and activity level.

Other elements essential to a companion parrot's well-being include appropriate toys to chew up and play with; veterinary care; and social time out of the cage whenever possible—preferably on play gyms or other out-of-cage perches. Larger parrots can be expensive to care for, messy, destructive, and loud, and some individuals may exhibit some aggressive behaviors during adolescence. Like dogs, parrots require some amount of basic training and proper early socialization to mature into good companions. Their intelligence means parrots learn new behaviors—both good and bad—easily.

Many birds end up having to be rehomed because their owners did not adequately understand the level of care required when they purchased the bird, did not understand how loud they can be, or did not understand how to properly socialize and train their bird. This is especially true for macaws and other species with dramatic, beautiful colouring, as well as cockatoos due to their intensely affectionate demeanor. These traits unfortunately make them tempting impulse purchases, leading to hundreds of macaws and cockatoos being put up for adoption.

In more recent years,^[when?] pellets or formulated diets have become very popular, especially in the US. They offer an advantage over a seed-based diet in that a parrot cannot pick out and eat only its favorite (usually fatty) seeds. The majority of avian veterinarians will recommend a pelleted or formulated diet, and will extensively discuss with owners what their bird should and should not eat. However, although these offer an easy alternative to other foods, they are not the best for many species. Many pellets contain artificial food dyes and preservatives that may be harmful; however there are "no-color-added" options available on the market.