The description of the species is based only on female specimens and the male is yet to be discovered and described. Taxonomy of this species is not very clear due to lack of information from recent reports.

The species is recorded from only three sites in two areas of the highly degraded Eastern Ghats. The habitat where the species occurs is completely degraded due to lopping for firewood and cutting for timber. The species is highly restricted in its extent of occurrence (less than 5,000 km²) and area of occupancy (less than 500 km²) with past and continuing decline in extent, area and quality of habitat. The population is additionally threatened by human interference in the form of persecution, collection for pet trade and other developmental activities.

Poecilotheria formosa is endemic to the southern Eastern Ghats between Salem and Tirupathi in southern India; reported only from three locations, altitude of less than 1,000 m. The extent of occurrence encompassing known and inferred distribution is less than 5,000 km², while the area of occupancy is less than 500 km² and could be even less than 100 km² due to extensive loss of habitat. In Andhra Pradesh: Renigunta station (Smith and Kirk 2001); in Tamil Nadu: Kadiampatti, Mullapuram in Salem District (Pocock 1900a,b)

Population information is not available. Although reported from three localities these reports are nearly a hundred years old. The locations are severely fragmented. No surveys have been conducted in these areas to establish the status, but considering the species to be closely related to other Poecilotheria species, their behaviours and ecology, we assume that the species has declined due to loss of habitat and degradation in quality of habitat in the Eastern Ghats.

Forests in these areas are of dry deciduous type with few patches of moist forests. No information is available on this species from the wild in last hundred years except for information on trade.

Habitat loss and degradation are major threats in the reported and inferred localities of the species. It is likely that in many localities the species would have gone locally extinct due to complete deforestation, logging of wood, forest fire and development activities. Given the habitat threats and restricted distribution, collection for international pet trade from the few remaining populations is an additional pressure on the extant populations.

This species has not been reported from any protected area. The species requires protection at the national level by being included in the Indian Wildlife (Protection) Act. It is also important that this species and all other Poecilotheria species from India and Sri Lanka are included under the CITES Appendix II to safeguard them from trade.