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Abstract PremiseSphagnum magellanicum(Sphagnaceae, Bryophyta) has been considered to be a single semi‐cosmopolitan species, but recent molecular analyses have shown that it comprises a complex of at least seven reciprocally monophyletic groups, that are difficult or impossible to distinguish morphologically. MethodsNewly developed barcode markers and RADseq analyses were used to identify species among 808 samples from 119 sites. Molecular approaches were used to assess the geographic ranges of four North American species, the frequency at which they occur sympatrically, and ecological differentiation among them. Microhabitats were classified with regard to hydrology and shade. Hierarchical modelling of species communities was used to assess climate variation among the species. Climate niches were projected back to 22,000 years BP to assess the likelihood that the North American species had sympatric ranges during the late Pleistocene. ResultsThe species exhibited parallel morphological variation, making them extremely difficult to distinguish phenotypically. Two to three species frequently co‐occurred within peatlands. They had broadly overlapping microhabitat and climate niches. Barcode‐ versus RADseq‐based identifications were in conflict for 6% of the samples and always involvedS. diabolicumvs.S. magniae. ConclusionsThese species co‐occur within peatlands at scales that could permit interbreeding, yet they remain largely distinct genetically and phylogenetically. The four cryptic species exhibited distinct geographic and ecological patterns. Conflicting identifications from barcode vs. RADseq analyses forS. diabolicumversusS. magniaecould reflect incomplete speciation or hybridization. They comprise a valuable study system for additional work on climate adaptation.