It has a single, more or less pendent growth with up to ten thin, leathery leaves and up to five green to dark brown flowers with a cream-coloured labellum that has purple markings.

Sarcochilus spathulatus is a small epiphytic herb with a single, more or less pendent growth with stems 20–40 mm (0.8–2 in) long.

[2][3] Sarcochilus spathulatus was first formally described in 1927 by Richard Sanders Rogers and the description was published in Transactions and Proceedings of the Royal Society of South Australia.

[4][5] The specific epithet (spathulatus) is derived from the Latin word spatha meaning "paddle for stirring or mixing".

[6] The small butterfly orchid grows on the outer branches of trees in rainforest or drier forests near streams.