Sand loving Iceland lichen is found on sandy or thin soils in a range of habitats, including dunes, prairies, and sandy forests.
On dunes, associates include Juniperus communis and Arctostaphylos uva-ursi, in prairies Krigia virginica, Panica virgatum, Stipa spartea, Boteloua hirstua, Schizachyrium scoparium, and Selaginella rupestris, and in forests Pinus species.