Dendostrea crenulifera occurs on subtidal (>
7m) boulders or is associated with hard corals in the eastern
waters of Hong Kong such as Hoi Ha Wan. It also attaches
to the walls of the marine cave at Conic Island. This species
is probably stenohaline since it is not recorded from the
western side of Hong Kong where salinities are much lower.
This species is distributed in the Red Sea and from Japan
south into the Indo-West Pacific.