M. polygramma contains two uncommon hydroxy fatty acids and is also a bioluminescent fungus whose intensity of light emission follows a diurnal pattern.

First called Agaricus polygrammus by French mycologist Jean Bulliard in 1789,[3] the species was later sanctioned under that name by Elias Magnus Fries in his Systema Mycologicum.

The cap margin is opaque and frequently has narrow, deep furrows or grooves, with the surface often more or less uneven and appearing as if streaked with glistening lines.

The surface is ashy-gray or paler grayish brown beneath the silvery covering, at times nearly smooth, with the apex pallid and faintly powdered.

The cheilocystidia are scattered to abundant, aciculate or with the midportion somewhat enlarged and the apex forked or branched and give rise to two or several contorted finger-like projections.

[12] The fruit bodies of M. polygramma grow in groups or sub-clusters under hardwoods, particularly deciduous trees such as oak, maple, and basswood.

[13] Typically found on twigs or buried wood,[11] the fungus is known to be a vigorous decomposer of lignin and cellulose in leaf litter.

[14] Mycena polygramma is a saprobic fungus and is one of many fungi that contribute to plant litter decomposition in forest ecosystems through nutrient recycling and humus formation in soil.

However, this light emission is not typically noticed, as it cannot be detected visually by the dark-adapted eye; sensitive photomultipliers or long exposure times are required to measure the phenomenon.