A relatively common species, the holly-leaved banksia is widely distributed within south west Western Australia. It occurs within of the coast, from Mount Lesueur to Augusta, and then east to the Cordinup River east of Albany. In the Margaret River region, it grows on yellow sand plains behind the Leeuwin-Naturaliste Ridge. Almost all occurrences are to the west (seaward) side of the Darling Scarp, although there are two outlying populations – one near Collie east of Bunbury and the other in the Tonbridge-Lake Muir area near Manjimup. Along the south coast, there is one inland population at Sheepwash Nature Reserve near Narrikup northwest of Albany. The annual rainfall over its distribution ranges from .