Saprotrophic, this species is fairly common. Fruiting bodies appear in autumn and winter (March to August) with some records from October, in moss or among leaf litter in wet sclerophyll forest or rainforest in temperate, subtropical or tropical climates. It also appears in sandy areas. It has been recorded from southeastern Queensland, eastern New South Wales, Victoria and Tasmania, as well as New Zealand and from Mount Kinabalu in Sabah. Although not recorded from North Queensland, it is predicted to occur there.