The Dwarf Umbrella Palm is a close cousin of the famous Egyptian papyrus plant. Like papyrus, the Dwarf Umbrella Palm grows in clumps in wet and boggy areas, although it will thrive in drier situations as well. This variety of the Umbrella Palm only grows about 2 feet tall. As with all the Cyperus plants, it is viviparous and will grow new plants from the junction of the leaf and stem.