Steppe peony (Paeonia tenuifolia L.) is a strictly protected herbaceous species in Serbia, yet its growing conditions, nutrient needs, and heavy metal status are under-researched. This research is vital for conservation, as it supports sustainable cultivation, genetic diversity, and habitat restoration. This study addresses the gap in understanding how climate and soil characteristics affect P. tenuifolia, particularly regarding nutrient availability and heavy metal accumulation. Despite its recognized medicinal value, insufficient data on environmental impacts limit effective conservation and cultivation strategies. Addressing this gap will help determine optimal growth conditions and ensure the species’ survival and medicinal use. Data on P. tenuifolia natural habitats in Serbia were collected following the Descriptor List for medicinal plants. Field and laboratory analyses assessed climatic and soil characteristics, as well as macro- and microelement contents and heavy metals in soil and plant organs. In Serbia, P. tenuifolia thrives in a semi-arid steppe climate on light, sandy loam soils with a pH of 6.9–7.4. The soils are rich in humus (4.36–5.76%) and nitrogen (0.34–0.37%), but low in phosphorus (1.16–3.50 mg/100 g) and variable in potassium (12.5–52.4 mg/100 g). Soil microelements are abundant, and harmful heavy metals are below critical levels. Plant organs, including flowers, seeds, leaves, and stems, show high phosphorus and magnesium levels, while potassium, manganese, and copper are generally low. The levels of potentially harmful elements like cadmium and chromium are near the maximum-allowed limits, suggesting avoidance of highly acidic soils for the cultivation of P. tenuifolia. Among the examined soils, Arenic chernozem is recommended for preserving the species’ natural resources.