It was first formally described as a new species by the French mycologist Camille Montagne in 1848, from specimens collected in Tahiti.

In the eastern Bay of Islands, northern New Zealand, it is commonly found in mixed coastal forests, exposed cliff sides, and maritime zones.

It is also observed on the bark of kānuka (Kunzea ericoides) and within regenerating coastal forests.

[6][7] On rocky, shaded cliff faces, Pannaria fulvescens grows alongside other foliose lichens like Leptogium azureum and Pseudocyphellaria crocata, taking advantage of the cooler, more humid conditions.

In maritime zones, it can be found in areas that are protected from direct wave exposure, demonstrating its ability to tolerate salty, coastal environments.