Parodia leninghausii is endemic to Rio Grande do Sul, Brazil. It occurs at elevations of 300-1300 meters above sea level. This species grows in hilly grassland and on walls between cracks in the rocks or in the shade of larger growing plants in pine forest. This species is abundant where it occurs. Many of its subpopulations have been extirpated. It grows in one of the most temperate region of the countries with warm and cool seasons and weather can become very cold during the winter nights, often it will fall to just above freezing without harming the plants as it is also very dry. The soil there is well drained and has a fairly high organic content, derived from the decomposition of other plants.