[1] Both Hypnodendron varieties most commonly grow in damp locations in the temperate and tropical rainforests of New South Wales, Victoria, and Tasmania in southern Australia and in New Zealand.

[2][1][3] This "miniature forest" dendroid species is viewed by David Meagher and Bruce Fuhrer in their publication A Field Guide to the Mosses and Allied Plants of Southern Australia as one of the most beautiful and unique species of mosses in the southern region of Australia.

[4] While both varieties are extremely similar, they are easily identified by their elevation above other moss and lichen species within their ecosystem.

Positioned atop an erect stem, the branches form an umbrella shape, the source of the common name "palm tree moss".

Most commonly located in Tasmania, its branches are compactly arranged, making this variety seem clumped and tightly packed.

[4][3] The plant is commonly located in wet forests and rainforests consisting of moist humeric layerings with loamy soil composition.

sieberi is more commonly located on mainland Australia and the northern South Island of New Zealand, whereas H. c. var.

Once the zygote has begun to enlarge, the seta elongates and develops a sporangium on the end in the form of a capsule.

This capsule consists of sporogenous tissue, a peristome to regulate the dispersal of spores, and an operculum to protect early release.

[3] Once spores are released, they germinate and grow into a narrow long rhizoid-like form named a protonema.