Pinus mugo is native to the subalpine zones of the Pyrenees, Alps, Erzgebirge, Carpathians, northern and central Apennines, and higher Balkan Peninsula mountains - Rila, Pirin, Korab, Prokletije, etc. It is usually found from 1,000–2,200 m (3,281–7,218 ft), occasionally as low as 200 m (656 ft) in the north of the range in Germany and Poland, and as high as 2,700 m (8,858 ft) in the south of the range in Bulgaria and the Pyrenees. Also in Kosovo it is found in the Bjeshkët e Nemuna National Park. In Scandinavia, Finland and the Baltic region, Pinus mugo was introduced in the late 1700's and 1800's where it was planted in coastal regions for sand dune stabilization, and later as ornamental plants around residences. In Denmark, Norway and Sweden, the species has naturalised and become invasive, displacing fragile dune and dune heath habitats. In Estonia and Lithuania pinus mugo only occasionally naturalises outside plantations, sometimes establishing in raised bogs.
