Armillaria luteobubalina is commonly found in eucalyptus forests in Australia, and is thought to be the most pathogenic and most widespread Armillaria species in the major western Australian forest types.
Armillaria luteobubalina umumnya ditemukan di hutan-hutan eukaliptus di Australia, dan dianggap merupakan spesies Armillaria paling patogenik dan tersebar di jenis-jenis hutan Australia barat besar.