It grows in damp mossy grassland, in coniferous forest clearings, or on wooded heaths.

Cystoderma amianthinum was first noted by the Italian-Austrian naturalist Giovanni Antonio Scopoli, who called it Agaricus amianthinus in 1772.

[2] The cap is usually between 2 and 5 cm (1 and 2 in) in diameter, convex to bell-shaped, and later flat with a slight depression around a low umbo (central boss).

[5] A very similar form with a markedly radially wrinkled cap, has been separated by some authors, and given the binomial Cystoderma rugoso-reticulatum.

[4] Cystoderma amianthinum is widespread in Europe and North America, and common in northern temperate zones.