Blue-and-Yellow Macaws are popular as pets partly because of their striking appearance and ability as a talking bird; however, their large size makes accommodation problematic, and they require much more effort and knowledge from owners than more traditional pets such as dogs or cats. They are intelligent and social, so for someone who can provide for their needs, they make good and loving companion parrots. Blue-and-Yellow Macaws bond very closely to their owners.

Even the most well-tended Blue-and-Yellow Macaw will "scream" and make other loud noises. Loud vocalizations, especially "flock calls", and destructive chewing are natural parts of their behavior and should be expected in captivity. Due to their large size, they require plentiful space in which to fly. According to World Parrot Trust, an enclosure for a Blue-and-Yellow Macaw should not be smaller than 15 metres (50 feet) long.

These birds are very intelligent and can be taught tricks after gaining enough trust from owners.

They require a varied diet; a seed only diet will lead to health problems such as vitamin deficiency. An example of a good diet would be a quality pelleted mix, in conjunction with a mix featuring seed, nuts, and dried fruits, with fresh vegetables (greens and roots) and fruits fed regularly; furthermore, it is quite common (and appreciated by the parrot) to partake with their human owners of safe foods like pasta, bread, etc.

It is important to avoid foods with high fat content (generally) while striving to provide a wide variety of foods. There are some foods which are toxic to birds and parrots as a group. Cherries and most other Rosaceae pits and seeds, avocados, chocolate, and caffeine are among the foods toxic to parrots. Chocolate and caffeine are not metabolized by birds the same way they are in humans. Rosaceae seeds contain cyanogenic glycosides, and avocados contain persin which are both toxic compounds to birds. Safe foods include oranges, apples, grapes, peanuts, walnuts, and sunflower seeds.

The macaws in the wild can be very aggressive, but as a baby it can be very playful.

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