Classified as an odd-chain fatty acid, it occurs as a trace component of the fat and milkfat of ruminants.

For many species, margaric acid plays a role as a semiochemical - specifically it possesses pheromonic and allomonic properties.

Margaric acid has been identified in the subcaudal gland secretions of the European badger (Meles meles)[3] and in the occipital gland secretions of male Bactrian camels (Camelus bactrianus) where it is one of the many pheromonic chemicals responsible for aiding in the finding and selection of mates.

[6] Margaric acid is also found in the precloacal gland secretions of many reptiles belonging to the order squamata, including the common leopard gecko (Eublepharis macularius)[7] and the European viper (Vipera berus), where it is used for the identification of sexual partners.

[10] Minor amounts (< 1%) of C17:1 cis-10 and C17:2 cis-8,11 were detected in seed oil of Portia tree (Thespesia populnea).