Palleon lolontany is endemic to Mount Tsaratanana (Maromokotro), Madagascar's highest mountain, on the Tsaratanana Massif. Its type locality is Matsabory Lake and Mount Tsaratanana at above mean sea level. Currently, P. lolontany specimens can be found between in one humid Tsaratanana forest, over an area of , the estimated size of suitable habitat in Tsaratanana for the species. At the most, the species can be found over an area of . It is listed as Near Threatened because it is only found at most in 468 square km, and if the slash-and-burn method of agriculture were used, the species would continue to decline in number, making the list of an endangered species. The species is also at risk from logging, although it is up to 2100 m above sea level. Currently, the population is stable.