It is endemic to the northern Thailand province of Phitsanulok on Phu Soi Dao, where it is only known from the type locality.

It grows on wet cliffs at altitudes around 2,000 m (6,562 ft).

It is related to U. garrettii, another species endemic to Thailand that shares a similar seed morphology.

Utricularia phusoidaoensis is easily distinguished by its purple 4-6-lobed corolla, reniform leaves, and the staghorn-like trap appendages.

It was first formally described by Piyakaset Suksathan (of the Queen Sirikit Botanic Garden) and John Adrian Naicker Parnell (of Trinity College, Dublin) in 2010 from collections made by Suksathan in 2007.