It is a rare species only known from the Fitzgerald River National Park and resembles Melaleuca eximia with its spikes of red flowers but its leaves and stamen bundles are different.

[2][3] Melaleuca penicula was first formally described as a subspecies of Melaleuca coccinea by Kirsten Cowley in 1990 from a specimen collected in the North Fitzgerald River National Park[4][5] but later elevated to species rank by Lyndley Craven and Brendan Lepschi in 1999.

[6][7] The specific epithet is a Latin word meaning "brush"[8] referring to the brush-like stamen bundles.

[2] Melaleuca penicula occurs in the Fitzgerald River National Park[2][3] in the Esperance Plains biogeographic region[9] where it grows in sandy soils near granite outcrops.

[10] Melaleuca papillosa is listed as "Priority Four" by the Government of Western Australia Department of Parks and Wildlife[9] meaning that it is rare or near threatened.