[2] P. fimetaria is found growing solitary to gregariously on horse or cow dung, in grassy areas, from September to November.

Psilocybe semilanceata may be an indicator species for P. fimetaria, as they favour similar grasses, soil types and climatic conditions.

Despite what much of the literature states, there have not been confirmed recordings of P. fimetaria in Asia or the Americas.

The best way to differentiate the species by testing for the presence of separable gelatinous threads running along the bottom edge of the gills.

Deconica coprophila can also appear similar but can be distinguished by its adnate or subdecurrent gill attachment, less-dense gill spacing and its cap being a deeper red colour.