Xyris neocaledonica is a herb, endemic to New Caledonia. It is restricted to the southern massif of Grande Terre (massif du Grand Sud), from the far south of the massif (Goro) to the upper part of the massif (Païta-Dumbéa-Thio). It occurs in wetland areas such as open swampy vegetation and hydromorphic maquis on ultramafic substrates over an altitude ranging from 100 m to 1,500 m asl. Some subpopulations may be impacted mining activities. However, this species is very common and it does not seem to be threatened. With an extent of occurrence (EOO) and area of occupancy (AOO) equal to 2,319 and 276 km², respectively, and due to the fact that it is abundant, X. neocaledonica is therefore listed as Least Concern (LC).

Xyris neocaledonica is endemic to New Caledonia where it is restricted to the southern massif of Grande Terre (massif du Grand Sud), from the far south of the massif (Goro) to the upper part of the massif (Païta-Dumbéa-Thio).

The population size is not known. Based on field observations, this species is very common.

This species occurs in wetland areas such as open swampy vegetation and hydromorphic maquis on ultramafic substrates over an altitude ranging from 100 m to 1,500 m asl.

Some subpopulations may be impacted by mining activities. However this species is very common and it does not seem to be threatened.

Xyris neocaledonica is not protected by legislation in New Caledonia but is does occur in several protected areas: Montagne des Sources, Vallée de la Thy, Rivière Bleue, Pic du Grand Kaori, Mont Mou, Côte Oubliée, Forêt Cachée, Forêt de Saille, Haute Dumbéa, Haute Yaté, la Dumbéa, Massif du Kouakoué and Mont Humboldt.