It is endemic to the eastern San Francisco Bay Area of Northern California.

The species is found from 656–1,460 feet (200–445 m) in elevation, primarily on thin soils composed of chert and shale.

Arctostaphylos pallida is known from approximately 13 populations in Alameda and Contra Costa counties.

Several other small, natural and planted populations occur in Alameda and Contra Costa counties.

To a lesser extent, the species is threatened by fungal infection, herbicide spraying, hybridization, construction of roads, and the ongoing effects of habitat fragmentation and loss.