Melaleuca lateriflora occurs from the Yuna and Mullewa districts east to the Coolgardie district and south to the Stirling Range in the Avon Wheatbelt, Coolgardie, Esperance Plains, Geraldton Sandplains, Jarrah Forest, Mallee, Murchison and Yalgoo biogeographic regions. It grows in sandy and clayey soils on flats, floodplains and swampy areas.