Drosera squamosa is arguably the most beautiful rosetted tuberous sundew. It is a species in the Drosera erythrorhiza complex that is distinguished by a striking margin of red around its leaves.

D. squamosa typically has 7-8 leaves which are oval to round in shape, each reaching around 6-10 cm in diameter. A red band borders the leaves. The red coloration may intensify throughout the season. There are two forms of the species generally recognised and their exact taxonomic relationships are current unknown.

A variety generally known in cultivation as the ‘laterite growing form’ grows in Jarrah Forest in the Darling Scarp east of Perth. Here, the substrate is usually composed of laterite rubble. The plants grow in dappled shade and attain the bright coloration regardless of light intensity. The red margins occur as distinct bands on the leaf. The other form is known as the ‘sand growing form’ in cultivation, and occurs in sandy peat aside swamps in flat topography near Bunbury and along the south coast. This taxon has a slightly more rounded leaf shape but the red margin is less pronounced.

The Drosera erythrorhiza complex consists of four closely related species and a number of intermediate forms. Drosera squamosa is most closely related to Drosera collina, both sharing an elongated leaf shape and sharing a similar habitat. Indeed, the separation between the two species has been debated. D. squamosa is distinguished from D. collina by its red margin.