Tremella mesenterica is extremely widespread occurring at elevations up to 1420 meters in Northern Europe, Taiwan, Japan, China, North America and Australia. In North America, T. mesenterica occurs primarily in lower elevation hardwood forests of southern Canada and the continental United States.

In Europe, the species is found chiefly in northern countries such as Finland, Sweden, Switzerland, Germany, England and Scotland. Within Australia, T. mesenterica is found chiefly in near coastal areas of New South Wales, Victoria and South Australia, and southwest Queensland; the Australian habitat is chiefly rainforest and eucalyptus forest.