Alabandite forms in epithermal polymetallic sulfide veins and low-temperature manganese deposits. It occurs with acanthite, calcite, chalcopyrite, galena, pyrite, quartz, rhodochrosite, rhodonite, sphalerite and native tellurium. Sometimes it was found in meteorites. Localities are several areas in Antarctica, Argentina, Armenia, Australia, Bolivia, Brazil, Bulgaria, Canada, China, Czech Republic, Finland, France, Germany, Ghana, Greece, Greenland, India, Italy, Japan, Kyrgyzstan, Mexico, New Zealand, Norway, Peru, Poland, Romania, Russia, Slovakia, South Africa, South Korea, Sweden, Switzerland, Taiwan, Tanzania, the United Kingdom, the US, Uzbekistan and Yemen. All together at present time approximately 220 discovery sites are registered.