Found on shallow, acid peat in open situations on the edge of wet heaths and grazed damp grassland, often where there has been fire. Conspicuous by its bright yellow colour, it derives its name from the closely compacted fascicles. The branch leaves are concave and appear almost hooded, giving rise to the possibility of confusion with Sphagnum papillosum. However, S.compactum is readily distinguished by its remarkably small stem leaves