Tetraphis pellucida occurs almost exclusively on rotten stumps and logs,[3] and is native to the northern hemisphere.

[3] Tetraphis pellucida reproduces both asexually through the production of gemmae, and sexually resulting in a sporophyte which will produce spores.

This growth produces a stellate structure after seven to ten days, at this time branching of the protonemata occurs.

After ten days the leafy gametophyte begins to develop, either directly from the gemma or from the protonema.

[8] Tetraphis pellucida develops a low-density asexual colony on a bare substrate, and is very susceptible to being out competed by species it commonly occurs with.

Without disturbance Tetraphis pellucida has a very low probability of reestablishing where senescent or competitor colonies are.

[10] Tetraphis pellucida is characterized by having a straight, smooth surface lacking protrusions – setae – whereas Tetraphis geniculata is characterized by having a papillose or tuberculate surface in the upper portion of a sharply bent seta.