M. schiedeana is also a cloud forest species, found further south in the Sierra Madre Oriental.

It has been found in the localities of La Yesca, La Joya del Hielo, Las Flores, La Silleta, and Coronel Castillo in the municipalities of Landa de Matamoros and Jalpan de Serra in Querétaro state and in adjacent San Luis Potosí state.

[1] At La Joya del Hielo it grows in cloud forest with Cupressus lusitanica, Magnolia rzedowskiana, and Taxus globosa.

At La Mesa it grows with species of Abies, Quercus, Liquidambar, Pinus, Tilia, and Podocarpus.

[2] Magnolia pedrazae is subject to habitat loss and degradation from timber extraction and expansion of livestock pasture.