Tufted hairgrass grows across Canada and south to North Carolina, the Great Lakes and the western mountains, and is also found in Eurasia, Africa and Australasia. It likes moist to wet ground in meadows, sandy or rocky shores, bogs and fens, and is a dominant grass in mountain meadows. It is the larval host for the Juba skipper and the umber skipper.
It is a widely planted ornamental grass in gardens, and cultivars such as 'Goldschleier' and 'Goldtau' have won the Royal Horticultural Society's Award of Garden Merit. In Britain it is a major component of grassland communities.
