[1] The species was formally described by botanist Robert Brown in 1811 in Hortus Kewensis.

The specific epithet is derived from the Greek words micro, meaning small and phyllon meaning leaf, alluding to the plant's small leaves.

[2] Eutaxia microphylla is recorded across southern South Australia and north-eastern Tasmania.

In Victoria it predominantly occurs in the west of the state and in New South Wales it is recorded in mallee and Mugga Ironbark communities to the west of the Great Dividing Range.

[1] Caterpillars of the Fringed Blue butterfly feed on this species.