Porroglossum olivaceum is from Colombia and Ecuador. It occurs in southern Colombia, at 1600m and in the adjacent area in Ecuador at about 1500m to 2000m. The species seems to occur in some places with many at a time. It is a variable species, at least in terms of flower color and shape. In some populations the tails of the lateral sepals are widely spaced and non-resupinate specimens also occur. The species is closely related to Porroglossum amethystinum, which also occurs in the same area.