Ideally you want the nest box hanging off the outside of the cage, with an entrance from the cage into the nest box opening. Then a perch inside the cage, just outside the nest box entrance.
Does your cage have a small hinged door on one of the sides near the top? This door can be removed and the nest box hung outside right there.
I think the box could be turned sideways instead of using it vertically. Or if you use it vertically you will need to have the entrance hole that the BIRDS use near the top of the nest box, then included a ladder down to the substrate you place in the bottom of the box so the birds can get in and out. Some people use wire mesh instead of a ladder.
What species will be using this box?
Hi
sodakat! Thanks for your reply. Its for Amazon parots. One orange winged and the female red lored. I think what i will do is keep the box verticle: I will drill the hole so that its near the top (though not tooo high ) .. I have a parrot ladder so i will use that. What substrate will I use? I have latches on the mid-top of the cage(please se link to see my cage:
Discovery Corner Parrot Cage - Antique which i will open and attatch to the hole on the nestbox. when i do this, should i keep the parrots in the cage shut? Right now the top of the cage is open and they fly off and sit on my curtain railings. To encourage breeding will it help to keep them closed in the cage (with access only to the nest box)?