It occurs throughout Eurasia, North America and Australia and grows with a wide range of hardwood and conifer trees.

The genus name is derived from the Ancient Greek Xeros "dry" and kome "hair", and refers to the velvety surface of the cap.

[4] As X. subtomentosus is the type species of the genus, it and close relatives remain Xerocomus as other members are placed in different genera.

A drop of ammonium hydroxide on the cap instantly produces a mahogany red reaction, which distinguishes it from some other similar species of the genus.

It can be distinguished from the latter in the field by the darker reddish-brown tones of the cap and its preference for associating with Populus trees.

[8] Xerocomus subtomentosus occurs in autumn in forests throughout Eurasia, North America and Australia and forming a mycorrhizal relationship with a wide range of hardwood and conifer trees.

[6][7] Xerocomus subtomentosus is found in subarctic areas of western Greenland, where it is common and grows in association with white birch (Betula pubescens).

[3] An elemental analysis of specimens collected from western Poland determined the mushrooms to have abundant amounts of the electrolytes potassium, phosphorus, and magnesium, with mean values of 46000, 8400, and 1100 milligramme/kilogramme dry weight, respectively, in the caps.

The levels of the toxic metals cadmium, mercury, and lead in the mushrooms "did not pose a threat to a consumer's health".