AbstractBiological soil crust, or biocrust communities, are the dominating life form in many extreme habitats, such as arid and semiarid badlands, where water scarcity and highly erodible substrates limit vegetation cover. While climate, soil and biotic factors have been described as environmental filters influencing biocrust distribution in such biomes, little is known about the effect of terrain attributes on creating specific microhabitats that promote or restrict biocrust colonization. This study aimed to identify the main terrain attributes controlling biocrust distribution in the driest badland system in Europe, the Tabernas Badlands (SE Spain). To do this, we analysed the influence of different terrain attributes related to landscape stability and microclimate formation on the spatial distribution of lichen and cyanobacteria, using field measurements and topographical information from a LiDAR survey. Our results showed that the spatial distribution of cyanobacteria‐dominated biocrusts, which are physiologically and morphologically adapted to extreme drought and high UVA radiation, was mostly associated with areas of high potential incoming solar radiation. The exception was bare south‐aspect hillslopes with very high sediment transport potential, where bare physically crusted soils were the dominant ground cover. Lichen‐dominated biocrusts, in contrast, colonized near the top of north‐aspect hillslopes, characterized by low potential incoming solar radiation and potential evapotranspiration, and their cover decreased downstream, as conditions became good enough for vascular plants. © 2019 John Wiley & Sons, Ltd. © 2019 John Wiley & Sons, Ltd.