The genus nameArgophyllum is derived from Ancient GreekÁrgos meaning white or shining, and phúllon meaning leaf. It refers to the white colouration of the underside of the leaves. The species epithetloxotrichum is created from the Greek loxós,, and trícha, and is a reference to the Y-shaped hairs on the upper leaf surface—one of the diagnostic characteristics that separates this species from the similar A. lejourdanii.
A. loxotrichum is endemic to north easternQueensland, but occurs in two disjunct populations that are more than apart. The southern group is west of Ingham while the northern one occurs from about Cairns to Mossman. The southern population is found in grassy woodlands or in the ecotone between that and rainforest but the northern population inhabits stunted well-developed rainforest. It has been observed at elevations from but occurs predominately at around 500 m, and it grows on a variety of soil types.