Betta albimarginata is a species of gourami endemic to the island of Borneo, where it is only found in the Indonesian province of Kalimantan Timur. It inhabits the shallows (5 to 10 cm (2.0 to 3.9 in)) of forest sreams amongst vegetation and debris along the shores. This species grows to a length of 2.8 cm (1.1 in).