The lesser woolly horseshoe bat is recorded from Peninsular Malaysia and Borneo. Few specimens are known, but it has been reported roosting in a culvert at a Malaysian national park.
The sella on its noseleaf is dark, and its forearm is the shortest in the trifoliatus group described in the study.
At Kubah National Park in Sarawak, it was recorded roosting in a culvert with two bats of another horseshoe-bat species.
An extinction-risk assessment has not been added yet.