The genus is closely related to the South American genera Pilgerodendron and Austrocedrus, and the New Guinean genus Papuacedrus, both of which are included within Libocedrus by some botanists; the four genera together form an example of the Antarctic flora distribution.
Saxegothaea is endemic to the Valdivian temperate rain forests of southern Chile and adjacent parts of Argentina, where it is generally found in association with Pilgerodendron uviferum and Fitzroya cupressoides