The species is found in Australia and New Zealand, where it fruits singly or in small groups on the ground in eucalypt woodlands, parks, and roadsides.

The whitish gills on the cap underside are closely spaced and free from attachment to the slender stipe, which has a loose ring on its upper half, and a bulbous base.

The fungus, first documented by naturalist John Burton Cleland in the early 20th century, was initially assumed to be the close relative Macrolepiota procera, a European species now known to be absent from Australia.

Else Vellinga showed using molecular phylogenetic analysis that these names refer to European species and were misapplied by Australian authors.

Macrolepiota clelandii was officially described by mycologist Cheryl Grgurinovic in her 1997 work Larger Fungi of South Australia.

Before this, Australian naturalist John Burton Cleland had referred the fungus to Macrolepiota procera,[1] a widespread, common species that is now known to not occur in Australia.

Else Vellinga subsequently emended the species concept of Macrolepiota clelandii to include specimens with four-spored basidia and pale fruitbody colouring.

[1] The fruitbody of Macrolepiota clelandii has a cap that is initially egg-shaped, later becoming convex and then flattened in maturity, reaching diameters of 7.6–12.5 cm (3.0–4.9 in).

[4] According to Peter Roberts and Shelley Evans, all "parasol" species (i.e., M. procera and its close relatives, including M. clelandii) are edible.

[1] The European species Macrolepiota konradii, similar in appearance to M. clelandii,[10] has a smaller range of spore dimensions, typically 13–17 by 8–10 μm.

[12] M. procera is a larger with broad caps up to 12 in (30 cm) in diameter, and the stipe surface is covered with brownish zigzag bands or scaly girdles on a whitish background.

[16] M. clelandii also occurs in New Zealand,[3][17] where it is found in mixed mānuka (Leptospermum scoparium), kānuka (Kunzea ericoides), and kauri (Agathis) forest, and in conifer plantations.