It is found in woodland areas in Europe, where it grows on decaying stumps, on buried roots or at the base of hardwood trees.

A similar, but phylogenetically distinct[3] species found in eastern North America is Omphalotus illudens.

It does not change color when bruised or sliced, a feature which helps to distinguish it from visibly similar species.

[6] Its bioluminescence, a blue-green color, can be observed in fresh specimens in low light conditions once the eye becomes dark-adapted.

[9] Identifiable characteristics of the jack-o'-lantern mushroom include true, sharp, decurrent, non-forking gills.

[11] Omphalotus olearius are an uncommon find and can be seen in the summer and fall seasons (July-October) in regions of southern Europe.