Cockatiels are generally regarded as good pets having a sweet demeanor, though this is by no means a guarantee. Like most other pets, the manner in which the animal is raised, handled, and kept has a profound effect on the temperament of the animal. Some birds are quite gregarious and sociable while others can be shy, retreating to the back of the cage when an unfamiliar figure appears. If handled often and if they have a patient owner the cockatiel(s) will become tame very quickly compared to some of the other parrot species.

Generally, well-socialized birds are gentle and friendly. Some cockatiels enjoy physical contact, lending themselves well to taming. Many cockatiel owners develop regular bonding rituals with their animals, engaging in preening, scratching, and even petting. A cockatiel that wishes to be petted will often lower his head or nibble at the owner's fingers to indicate that it wishes to have its head and neck scratched (two places it can't easily scratch on its own), and will emit a low squawk to show its pleasure. Cockatiels which are hand-fed and purchased from a young age are more readily suited for physical contact.