The Bog Orchid is a very inconspicuous small orchid, which occurs in extreme nutrient-poor raised bogs and transition bogs and in silting up zones of small lakes. The species is very rare and moribund.

Colonised are acid, very wet locations. Normally the species growths in peat moss pads in quaking bogs (in the area of silting up zones of lakes) or along the edge of bog hollows. Often the plant is accompanied by the Small Cranberry (Vaccinium oxycoccos) and the German sundew species (Drosera spec.).

The plant is bright green, between 5 – 20 cm tall and produces up to 35 tiny flowers. During blossoming the ovary performs a 360° rotation, so that the lip points upwards.

According to new findings the species is closely related with Malaxis monophyllos, so that Hammarbya paludosa is partly classed into the genus Malaxis as Malaxis paludosa.