It is threatened by many of the environmental issues with coral reefs such as increased sea surface temperature, ocean acidification, and overfishing for the marine aquarium trade.

[5] The National Oceanic and Atmospheric Administration has stated there is "a risk of extinction within the foreseeable future for Euphyllia paradivisa.

[5] Euphyllia paradivisa displays fluorescence when the chromatophores of its zooxanthellae and the coral host pigments are excited by blue-dominated light.

[6] It is native to the Indo-Pacific islands, distributed mostly in the Coral Triangle area, and also found in the American Samoa.

[5] It prefers environments protected from surface wave action on fringing reef crests, mid-slope terraces, and lagoons at depths of 2 to 25 meters (6–82 ft).