This tree species is nearly endemic to southern Vanuatu, but with one disjunct location in northwest Espiritu Santo Island in the north of the archipelago. It has a small extent of occurrence and area of occupancy, and is found in nine locations, in low-elevation rainforest habitats that are fragmented and threatened by agricultural expansion. It is here assessed as Vulnerable.

Polyscias schmidii is known only from Vanuatu, where it exhibits a disjunct distribution between Tafea Province (on the islands of Erromango, Tanna, and Aneityum) in southern Vanuatu, and Samna Province (where it is restricted to the northwestern corner of Espiritu Santa island) in northern Vanuatu.

The species is rare wherever it is found, with only nine known locations. Population trend is decreasing.

Polyscias schmidii is a subcanopy to canopy tree found in rainforests, ranging from 3 to 15 m tall.

The primary threat to the species is very rapid habitat destruction throughout its range, in particular due to increased subsistence farming and commercialized agriculture. Low-elevational rainforest areas where the species is found are limited and extremely fragmented.

Saplings of this species are used in local construction of traditional houses, and leaves are used as a flavouring when cooking meat.

Native forest fragments where the species is found should be targeted as protected sites. Local nurseries should be established to enhance subpopulations and restore degraded forest patches.