Basidiocarps (fruit bodies) are gelatinous, pallid, minute and pustular at first then coalescing and becoming irregularly effused.

McNabb who placed it in his new genus Pseudostypella based on its minute, gregarious fruit bodies which he considered unlike those of more typical Exidia species.

[2] The basidiocarps of E. nothofagi are gelatinous, pustular, and densely gregarious, with individual fruit bodies up to 1 mm across, coalescing to form effused, irregular pale whitish yellow to pinkish grey masses up to 15 cm across.

Basidiospores are allantoid (sausage shaped), 12 to 16 by 4.5 to 5.5 μm, with thin, smooth walls.

It has been found on dead wood of Nothofagus species (southern beech) and may be restricted to this host genus.