Native across broad parts of the Northern Hemisphere, Sphagnum fimbriatum grows in bogs, wetlands, and other saturated places with very low oxygen in the substrate. That habitat explains why it prefers peaty, organic-rich, silty material that stays consistently wet rather than drying quickly.
Instead of relying on deep anchoring roots, sphagnum uses fine structures mainly to hold itself in place and take up water across its tissues. The best soil for sphagnum is acidic and moisture-retentive, with a soft, open texture that remains saturated without becoming compacted and airless.