The biology and ecology of Cephaloziella varians, the most widespread and abundant liverwort in Antarctica, are reviewed. A description of the species is given, together with information on its geographical distribution, reproduction, habitats, associated organisms and responses to environmental stresses. Characteristics of its photosynthetic physiology are also presented, including data on oxygen evolution rates and chlorophyll a fluorescence parameters. Substratum and tissue chemistry, water relations and pigments are discussed, along with recent data demonstrating that the dark pigment in the apical leaves of C. varians is the anthocyanidin riccionidin A. Recent studies showing that the ericoid mycorrhizal symbiont Rhizoscyphus ericae is present in the tissues of the plant at a wide range of locations in the maritime and sub-Antarctic are also described. It is evident, from the literature reviewed, that C. varians has several adaptations that enable it to survive in the Antarctic biome, explaining its survival at higher latitudes than any other hepatic. The species’ major adaptations include the synthesis of riccionidin A in apical leaves, enabling efficient heat absorption and protection from photoinhibition, and the presence in stems and rhizoids of fungal hyphae, which are potentially beneficial to the hepatic’s nutrition and possibly also synthesize cryoprotectants.