Fruit bodies are usually found growing alone or in small groups on leaf litter during autumn months.

[3] Fruit bodies have convex to plano-convex caps measuring 3–5.5 cm (1.2–2.2 in) in diameter.

The gills are closely spaced, white to dull brown, and have fringed edges.

[5] In North America and Europe, Inocybe hystrix grows in deciduous forest, especially beech.

[6] In Costa Rica, it is found in the Cordillera Talamanca, where it associates with Quercus costaricensis at elevations around 3,000 meters (9,800 ft).