Plectania nannfeldtii is typically found at higher elevations in coniferous forests growing on wet twigs or other rotting woody debris, often in or near snow. It often begins its development underneath the snow, reaching maturity as the snowbank recedes to expose it; one source suggests that its metabolic heat may help it melt a path through snow as it grows. It may grow singly, scattered or in clusters, and has been noted to have a preference for the wood of Picea engelmannii and Abies lasiocarpa as well as other conifers. In North America, it is found in the Western United States and Canada, where it fruits from late May to early August; it is common in the Sierra Nevada and in higher elevations of the Pacific Coast Ranges. Its distribution also includes China and Japan.