Its distribution covers the arctic tundra of Eurasia and extends to the North American Aleutian Islands.

The type specimen was collected from Täljstensvalen mountain (Jämtland, Sweden).

Its thallus features white, hollow, cylindrical tufts, which are morphologically the same as the other members of genus Thamnolia.

Thamnolia tundrae, however, is phylogenetically distinct from these other similar species.

The species is suspected to have survived the latest glaciation in coastal refugia in regions close to its current range.