"Banksia marginata" is found from Baradine and Gibraltar Range National Park in northern New South Wales, southwards into Victoria and South Australia, as well as across Tasmania. It is found on the major islands of Bass Strait, including King, Flinders and Cape Barren Islands. There is one report of a collection from the Springbrook Mountains southwest of Southport in southeastern Queensland. It is extremely rare in southwestern New South Wales. In Victoria, it is predominantly coastal or near-coastal east of Traralgon, but in New South Wales it is absent from coastal areas in the Sydney region. "Banksia marginata" often grew as a large tree on the basalt plains west of Melbourne, but has almost disappeared. In the vicinity of Adelaide, it was common in the western suburbs on old sand dunes behind the beach foredunes. It remains common in the Adelaide foothills. The annual rainfall over its distribution ranges from .