Sulzbacheromyces bicolor was formally described as a new species in 2017 by Dong Liu, Li-Song Wang, and Bernard Goffinet.

It is most closely related to S. fossicolus, from which it can be distinguished by its two-toned colouration and the presence of a silvery-white coating (called a prothallus) on its crust-like body.

[3] The organism consists of a thin, crusty layer (thallus) that grows on soil and rocks, covering areas of 5–40 cm in diameter.

Under the microscope, the fungal threads (hyphae) show distinctive swellings and contain oil droplets, and the reproductive cells produce elliptical, transparent spores.

[2] Sulzbacheromyces bicolor is known to occur only in two locations in southwestern Yunnan Province, China, where it grows on exposed red soil and rocks.