This is an endemic species found in the dry mixed evergreen forests of the dry zone. It is recorded from forested areas in Anuradapura, Bintenna, Bibile and Nilgala.
The conservation status of the species under reference is regarded as Endangered (National Red List 2012). Habenaria dichopetela is a species protected under the Fauna and Flora Protection Ordinance as amended by Act No. 22 of 2009.
I observed this species in bloom on the Maha Wewa road on the 11th of January 2014. This is the first occasion where I have observed this orchid any where in the country. During the survey conducted by the IUCN in 2006 this species has been recorded from Pukkulam.