Occurring singly, gregariously, or caespitosely on cow/horse dung, moose droppings, and in pastures.

Widely distributed in North America throughout the year, but only in warmer climates in winter.

It can be found in countries including[2] Canada (Alberta,[3] British Columbia), the United States (Alabama, Alaska, California,[3] Colorado, Florida, Georgia,[3] Indiana,[3] Louisiana,[3] Maine, Massachusetts, Missouri, Montana,[3] New Mexico, New York, Oklahoma, Texas,[3] Washington[3]), the Caribbean (Bahamas, Cuba, San Vincent Island), Chile, Colombia, Uruguay, France, The Netherlands, Greece, Mexico,[3] Norway, Slovenia,[3] South Africa, Uganda, China, Iran, Lithuania, Kuwait, and the Philippines.

Panaeolus papilionaceus is inedible,[4] and is neither choice in flavor nor substantial in mass.

While similar looking species, such as Psilocybe mexicana, do contain psilocybin, Panaeolus papilionaceus does not.