 "Banksia aquilonia" occurs in coastal areas of northern Queensland from the Cedar Bay National Park to Paluma Range National Park, in areas with an annual rainfall of .It occurs from near sea level to an altitude of , in a variety of habitats and aspects.It grows in wet sclerophyll forest or rainforest margins, on plateaus, ridges, slopes and low-lying swampy areas on sandy or rocky soils, generally of granitic origin, or sometimes clay.