The rare microscopic red alga Galdieria phlegrea (Cyanidiohyceae, Rhodophyta) has been discovered in the extremely acid Tinto River in Spain and this occurrence is here related to previous knowledge about the distribution and ecology of this enigmatic alga. The taxonomic affiliation of the new isolate of G. phlegrea was revealed by reconstructing the phylogeny of plastid‐encoded rbcL. According to this phylogeny, the Tinto River alga is closely related to other G. phlegrea strains originating from extreme habitats in Czechia, Italy and Turkey, suggesting a wider distribution and higher ecological versatility than previously thought. The results suggest that G. phlegrea, and then possibly also other cyanidiophycean algae, are not as restricted to strongly acidic and hot microhabitats as previously believed, which, in turn, may indicate that they may commonly have been overlooked and possibly are much more widespread than is currently believed.