Magnolia guatemalensis is a tree found in the highlands and mountains of Chiapas, Guatemala, El Salvador, and Honduras. It is considered an indicator species of the cloud forest. There are two subspecies: M. guatemalensis subsp. guatemalensis, endemic to Guatemala; and M. guatemalensis subsp. hondurensis, commonly known as the Honduran magnolia, native to El Salvador and Honduras. Both subspecies have been assessed as endangered by the IUCN. This species has been successfully hybridized with the Southern magnolia (M. grandiflora).