Marasmius elegans, commonly known as the velvet parachute, is a species of fungus in the family Marasmiaceae.

It has a reddish-brown cap, and a whitish stipe with white hairs at the base.

It can be found in eucalypt forests in Australia.

[1] The species was originally described as Collybia elegans by the Australian mycologist John Burton Cleland in 1933.

[2] Cheryl Grgurinovic transferred it to Marasmius in a 1997 publication.