Austrian naturalist Franz Xaver von Wulfen described the false chanterelle as Agaricus aurantiacus in 1781, reporting that it appeared in the fir tree forests around Klagenfurt in October.

He added that it could be confused with the chanterelle by the inexperienced, but that its true nature was very different; in contrast to its edible lookalike, he described it as "kind of pernicious".

[6] Bernhard Studer-Steinhäuslin concluded it could only be classified in the genus Clitocybe in 1900, based on its white spores, decurrent gills and lack of a ring.

Martin-Sans concurred with Maire's assessment of Hygrophoropsis, suggesting that it represented a form intermediate between Cantharellus and Clitocybe, and was thus worthy of generic ranking.

[19] In 1979, Egon Horak suggested that H. aurantiaca and the New Zealand taxon H. coacta were the same species,[20] but neither Index Fungorum nor MycoBank accept this synonymy.

[2] However, the forked gills, frequently off-centre stipe placement, and dextrinoid spores of H. aurantiaca suggested a relationship with Paxillus,[25] prompting Rolf Singer to classify the genus Hygrophoropsis in the family Paxillaceae in 1946.

[26] The presence of these pigments suggests a chemotaxic relationship with the Boletaceae, Coniophoraceae, and Paxillaceae – families of Boletales with members that have similar compounds.

[30] The false chanterelle has a golden-orange cap ranging from 2–10 cm (3⁄4–3+7⁄8 in) in diameter,[31] initially convex but becoming funnel-shaped as the mushroom matures.

[33] The ability to form sclerotia (compact masses of hardened fungal mycelium) has been documented for H. aurantiaca in laboratory studies.

[40] Characteristics typically used in the field to distinguish Hygrophoropsis aurantiaca from lookalike species include: the soft, dry consistency of its cap; the crowded, decurrent, and forked gills that are saffron to orange coloured; and the lack of any distinctive taste or odour.

[41] The cap surface of Hygrophoropsis fuscosquamula, found in Britain, has fine brown scales overlaying a dull orange background.

[32] H. tapinia, found in a range extending from southern Florida to Central America,[42] is set apart from H. aurantiaca by its growth on or under deciduous trees (never conifers), and smaller spores, which measure 3.3–4.8 by 2.5–3.3 μm.

[14] Formerly a member of Hygrophoropsis, Aphroditeola olida is also similar in appearance to H. aurantiaca but can be distinguished from the false chanterelle by its smaller, pinkish fruit bodies and candy-like odour.

[37] Cortinarius hesleri, an eastern North American species that associates with oaks, has a rusty brown spore print and a cortina in young specimens.

[44] The poisonous jack-o'-lantern mushrooms (genus Omphalotus) comprise another group of lookalikes; however, they have straight, non-forked true gills.

[45] The European wood-rotting species Haasiella splendidissima,[nb 1] sometimes confused with H. aurantiaca, is most readily distinguished from the latter by its pink spore print and gills that do not fork.

[38] Other locations where the false chanterelle has been recorded include Central and South America, northern Asia, Australia and New Zealand.

[43] Populations in California represent a complex of undescribed species that are collectively referred to as Hygrophoropsis aurantiaca sensu lato.

[55] The Tepehuán people of northwestern Mexico also occasionally eat the mushroom, which they refer to in their native language as guin'xacan ("delightful") or kia's gio' ("iguana lard"); there, it is commonly prepared by roasting over charcoal, or boiling and garnishing with cheese.