The Montezuma Baldcypress is a large, needle-leaf, aquatic tree with a tall, straight trunk and a broad crown of spreading branches and drooping twigs. It's usually evergreen and not hardy in cold climates. The tree is closely related to the Baldcypress of the southeastern United States, T. distichum, which also occurs in Mexico. The trunk is enlarged at the base with ridges above and sometimes tiny "knees" project from submerged roots.

The majestic veterans in Chapultepec Park, Mexico City, are among the oldest cultivated trees in the New World, perhaps exceeding 600 years and reaching a height of 165' (50 m). The Big Tree of Tule, near Oaxaca, Mexico, is a famous giant formed by the fusion of 3 trees. Its trunk circumference is 112 ft (34 m) and its height is 141 ft (43 m).

The Montezuma Cypress grows faster than the Bald Cypress in good conditions and is semi-deciduous in winter. However, it could suffer winter damage in Central Texas northward. It's a cone-bearing plant, and its cones open in February. Seeds ripen in October after flowering in March or April and are released upon cone ripening. The tree also has a weeping form.