Paeonia cambessedesii is an endemic of the Balearic Islands, at one time present on Mallorca, Menorca and Cabrera, but now limited to the mountainous Northeast of Mallorca, such as in the Parc Natural de Llevant, and Northwest, such as the slopes of the Puig Major, where it grows on rocky limestone slopes or below limestone cliffs. It grows together with species like Aristolochia bianorum, Astragalus balearicus, Galium balearicum, Helichrysum italicum, Helleborus lividus, Hypericum balearicum, Pastinaca lucida, Rosmarinus officinalis, Rubia angustifolia, Scrophularia canina, Santolina chamaecyparissus, Smilax aspera, Teucrium asiaticum and T. marum. Like all peonies, the Balearic peony is very poisonous, and is avoided by grazers. The flowers are pollinated by bees and other insects.