Montane cloud forests are characterized by frequent fog, leading to high relative humidity, low light availability, and lower temperature. Bryophytes play important roles in cloud forests, contributing to water retention, nutrient cycling, and microhabitat formation. Although bryophytes are known to be sensitive to environmental changes, the mechanisms of community assembly and acclimation strategies in response to the fog effect remain poorly understood. We focus on the effect of microhabitat and fog, proposing two research questions: (1) How does the interaction of microclimate and fog affect the bryophyte community compositions along the fog frequency gradient across different microhabitats? (2) Do bryophyte functional trait distributions show the patterns of convergence and divergence across microhabitats? The horizontal transect was established from low to high fog frequency with nine 20 × 20 m permanent plots at an elevation of around 2000 m asl. In each plot, three microhabitats (tree trunk, coarse woody debris (CWD), and bare soil) were surveyed for bryophyte species composition using a set of 10 × 15 cm microplots. Traits include specific shoot length, water-holding capacity, and tissue pH. Environmental data, recorded in microplots of each microhabitat, included microclimate, aspect, slope, and substrate pH. We found that soil and CWD maintained higher stable humidity, whereas bark showed higher moisture variability. Ordination showed that bryophyte community composition is clustered by microhabitats, with communities on the trunk and CWD associated with fog frequency. These results suggest that microhabitats interacting with fog, which provide different microclimate conditions and substrate characteristics, filter the bryophyte community.