It occurs in tropical North Queensland, Australia and New Guinea.There are four varieties of this orchid, each of which has previously been considered a separate species.

[19][20] The Queensland government, in preparation for its 1959 Centenary, sought advice as to what native species would be a good floral emblem.

Specifically, the government was looking for an easily grown species found only in Queensland, which was decorative, distinctive, and close to the State colour, maroon.

The Cooktown orchid, which meets these criteria, was one of the four initial suggestions, the others being the red silky oak (Grevillea banksii), the umbrella tree (Brassaia actinophylla (now Heptapleurum actinophyllum), and the wheel-of-fire (Stenocarpus sinuatus).

In a public poll, the Cooktown orchid came in first place, the red silky oak in second, and poinsettia (Euphorbia pulcherrima), already the floral emblem of the capital city Brisbane, came in third.

[22] This orchid species grows on trees and rocks in rainforest, coastal scrub, near rivers, in swamps and open forest in tropical Queensland.

[13] Dendrobium bigibbum is listed as "vulnerable" under the Australian Government Environment Protection and Biodiversity Conservation Act 1999.

The main threats to the species are "settlement and visitor pressures", inappropriate fire regimes and illegal collection.