The fruit body is a mushroom. Initially the cap is almost globular and both it and the stem are shaggy or scaly (the scales simply being simply bundles of short fibres). With age much of this shagginess/scaliness disappears and the cap flattens a little, but remains convex. The brown cap may grow to 2 centimetres in diameter and the pallid or brownish stem to 3 centimetres in length. The gills are orange-brown to chocolate brown (the latter as the spores mature).
At an early stage there is a thick. cobwebby partial veil that extends from the stem to the cap edge and hides the gills. There is no universal veil.
Spore print: dark brown.
The fruit bodies grow on dead wood, often in colonies.
This species was first described in 1934, based on specimens collected in South Australia.
Psathyrella echinata is listed in the following regions:
Canberra & Southern Tablelands | South Coast