 It remains stable in aqueous solutions for prolonged periods but rapidly decomposes and loses its toxicity in acidic or alkaline solutions.It has multiple analogues with a similar structure like ostreocin-D, mascarenotoxin-A and -B.

Palytoxin occurs at least in tropics and subtropics where it is made by "Palythoa" corals and "Ostreopsis" dinoflagellates, or possibly by bacteria occurring in these organisms.It can be found in many more species like fish and crabs due to the process of biomagnification.