It grows in subalpine areas of New South Wales, Victoria and Tasmania.

Prasophyllum sphacelatum is a terrestrial, perennial, deciduous, herb with an underground tuber and a single dull green, tube-shaped leaf, 280–380 mm (11–15 in) long and 2–4 mm (0.08–0.2 in) wide with a white to reddish base.

The flowers are green to reddish-brown, 14–18 mm (0.6–0.7 in) long and strongly scented.

[2][3] Prasophyllum sphacelatum was first formally described in 1996 by David Jones from a specimen collected near Tantangara Dam in the Kosciuszko National Park and the description was published in Muelleria.

[1][3] The specific epithet (sphacelatum) is "derived from the Greek, sphakelos, necrosis, mortification, describing the withered leaf tip at anthesis".