This tiny mushroom often fruits in large numbers on stumps and decaying logs in hardwood forests. The very similar Xeromphalina campanella appears on the wood of conifers. It has gills that run down the stem, and a wiry stem that is yellow above, and brownish below. On close inspection, the gills are often connected by many cross-veins, which is one of the defining features of the genus Xeromphalina.
It is saprobic on the dead hardwoods. Found in spring and summer. It is widely distributed in eastern North America.