C. striatus can be distinguished from most other bird's nest fungi by its hairy exterior and grooved (striated) inner walls.

Young specimens have a lid, technically called an epiphragm, a thin membrane that covers the cup opening.

The epiphragm is hairy like the rest of the exoperidial surface, but the hairs often wear off leaving behind a thin white layer stretched across the lid of the cup.

They typically hold 4 spores that are sessile, that is, attached directly to the surface of the basidium, rather than by a short stalk (a sterigmata).

[18] Cyathus striatus is a saprobic fungus, deriving its nutrition from decaying organic material, and is typically found growing in clusters on small twigs or other woody debris.

[19] The features of the microenvironment largely influence the appearance of C. striatus; all else being equal, it is more likely to be found in moist, shallow depressions than elevated areas.

[22] Cyathus striatus can reproduce both asexually (via vegetative spores), or sexually (with meiosis), typical of taxa in the basidiomycetes that contain both haploid and diploid stages.

After the spores have been dispersed into a suitable growing environment, they germinate and develop into homokaryotic hyphae, with a single nucleus in each cell compartment.

When two homokaryotic hyphae of different mating compatibility groups fuse with one another, they form a dikaryotic mycelia in a process called plasmogamy.

[24] The cone shaped fruiting body of Cyathus striatus makes use of a splash-cup mechanism to help disperse the spores.

When a raindrop hits the interior of the cup with the optimal angle and velocity, the downward force of the water ejects the peridioles into the air.

The force of ejection rips open the funiculus, releasing the tightly wound funicular cord.

The peridioles degrade over time to eventually release the spores within, or they may be eaten by herbivorous animals and redeposited after passing through the digestive tract.