It tolerates a very wide range of substrata, predominantly rock but also tree bark, roofing tiles, glass, and in wetter areas bitumen paths and roads.

The type was collected by botanist James Drummond near Swan River in Western Australia.

[3] Xanthoparmelia scabrosa is common in Australia and New Zealand, also occurring on Norfolk Island, Papua New Guinea, Fiji, Argentina, South Africa and Japan.

[3] In New Zealand it grows abundantly on roads and footpaths, ordinarily an inhospitable environment for lichens.

[6] Xanthoparmelia scabrosa appears to tolerate the high levels of heavy metals present in asphalt by accumulating these in the thallus.