The Madeiran Speckled Wood is endemic to Europe, where it is restricted to Madeira (Portugal). In the past there were concerns that the species had been dramatically and consistently declining since at least 1986, with an 18% decline in abundance across the island since 2010 (Bland and Lace 2020). The exact causes of decline were thought to be intraspecific competition with the introduced Pararge aegeria, parasitism, and climate change. However, recent surveys show large and stable populations from 2020-2022.

The area of occupancy (AOO) is 328 km², the extent of occurrence (EOO) is 547 km², and there is evidence of a small decline in the last 10-12 years, but populations are not severely fragmented or extremely fluctuating. This means that it meets only one of the B subcriteria and has been precautionarily assessed as Near Threatened B1b(v)+2b(v).

This species is endemic to the European region where it is restricted to the island of Madeira (Portugal). The species is found across the island but is most common above 1,000 m in areas where the native laurel forest and tree heather are dominant (Bland and Lace 2020). Recent surveys in 2021-22 coordinated by Butterfly Conservation Europe (Teixeira et al. 2022) have found it to be still widespread and abundant in laurel forests and some other types of forest, and its occupancy may be increasing. It is found at altitudes between 200 and 1,400 m.

This species is endemic to Madeira and is mostly restricted to the native laurel forest. In 2018, the abundance of Pararge xiphia was measured at 10 localities across Madeira and compared with data taken at the same localities over the past 32 years. The study found that P. xiphia has declined dramatically and consistently since 1986. This was particularly evident from 2010 to 2018 when the species declined by 18% (Bland and Lace 2020).

However, recent surveys coordinated by Butterfly Conservation Europe from 2020-2022 have found it to be still widespread and abundant in laurel forests and some other types of forest, and its occupancy may be increasing - but these were relatively wet years and continued monitoring is needed to see if populations will be maintained (Teixeira et al. 2022).

The Madeiran Speckled Wood is a typical woodland butterfly. It can be found throughout the year mostly within the native laurel forests. The species is also found in lower abundances within non-native habitats such as agricultural land and pine and eucalyptus forests. The caterpillars' foodplants are grasses such as the False-brome Brachypodium sylvaticum, Holcus lanatus, Agrostis gigantea and Festuca donax. This species produces several generations a year. In summer, the number of butterflies sometimes decreases for a while (Tolman and Lewington 2008). The species is mostly found at altitudes above 1,000 m, but can be found in the few areas where laurel forest is still present at low altitudes. Since 1986 the species has experienced a range shift into higher altitudes, possibly as a result of climate change causing the species to move into cooler areas (Bland and Lace 2020).

The laurel forest habitat which the Madeiran Speckled Wood is found in has reduced in area and quality in the past, but is still abundant on Madeira. Some natural forest has been replaced by fast growing Eucalyptus and other trees. Several studies have found that the species has declined in the past but the exact cause of decline is not yet defined (Lace and Jones 1984, Owen et al. 1986, Jones and Lace 1992, Bland and Lace 2020). However, there are likely to be several contributing factors. Another threat is from competition with the introduced butterfly Pararge aegeria that has been observed at the larval and adult stage, with evidence to show the colonist has competitive advantages in both (Jones et al. 1998, Gibbs et al. 2004b). Parasitism by the invasive parasitoid wasp Trichogramma gicai could also be a cause for the population decline, although eggs of both P. xiphia and P. aegeria were found to be parasitised (Gibbs et al. 2004a). The effect could be more damaging to the endemic species which has evolved in isolation of the parasite and has lower fecundity than the colonising species.

P. xiphia has experienced a range shift uphill, possibly as a response to climate change (Bland and Lace 2020). However, recent surveys by Butterfly Conservation Europe and its partners on the island suggest that this period of decline has ceased and it is now widespread and stable in suitable forests.

All butterflies are collected to some extent, but only for the extremely rare species can it be a problem and the trade in Europe is generally at a low level compared to other continents. There is no specific trade information for this species.

Monitoring of the species distribution and research into its ecology should continue. Further information is required on the interaction between Pararge xiphia and Pararge aegeria and the effect of the parasitic wasp Trichogramma gicai on P. xiphia. Protection and management of the laurel forest area should continue.