It is endemic to the central hills of Sri Lanka[2][3] and is known from the Peak Wilderness Sanctuary, Agra Bopath, Horton Plains, and Pedro.

[3] Pseudophilautus schmarda occurs primarily in cloud forests at elevations of 810–2,300 m (2,660–7,550 ft) above sea level, but has also been recorded in pine and abandoned tea plantations.

While juveniles have been observed on the forest floor, adults occur in the understorey vegetation some 1–2 m (3–7 ft) above the ground.

The eggs are deposited in a deep hole that the female excavates in the forest floor.

While much of its range lies within protected areas, habitat deterioration is taking place because of illegal firewood collection, clear-cutting for timber, and conversion to agricultural land such as tea plantations.