[3][4] The specific epithet "lycopodioides" refers to the resemblance of the foliage to that of plants (clubmosses) in the Lycopodium genus (-oides is a Greek suffix meaning 'resembling').

[3] Ozothamnus lycopodioides is found in dry sclerophyll forest near the east coast of Tasmania, typically growing on rocky slopes along rivers.

[3][7] Key sites where populations of the species can be found include Paradise Gorge along the Tasman Highway, the Sugarloaf, Prosser River, Lake Leake Road, Kelvedon, Swansea, Swanston Road, north of Buckland Military Training Area, Little Swanport, Griffiths Rivulet and near the Thumbs picnic area.

[3] Ziegler (2003)[9] recommended that shrubby sites where O. lycopodioides grows should not be burnt at intervals of fewer than 30 years, due to slow regeneration times of the flora.

[3] This dwarf evergreen shrub with spreading branches is suitable for native gardens, thriving in most soils with good drainage and tolerating full sun to part shade.