A study of the distribution and conservation status of Xanthoparmelia willisii in Tasmania has confirmed that this lichen is very uncommon, known only from three viable populations, all on private land. The habitat of the species, native grassland and herbfield grazed by sheep, has been severely modified and fragmented elsewhere in Tasmania. Sufficient data now exist for nominating this species for listing under the Tasmanian Threatened Species Protection Act 1995. Remnant dry grasslands appear to be an important habitat for terricolous lichens and several additional species are also likely to be at risk.