It produces an asexual branching structure with a single stem as an anamorph and no teleomorph or sexual state has been recorded.

The species was described from Taiwan in 2017 as arising from the soil with a main axis to about 2-5 cm height.

There is repeated branching of the structures ending in gray conidium bearing parts.

No specific substrate was traceable in Xylaria terricola and it appears to grow in soil.

DNA sequence analysis places Xylaria terricola within the termitophile clade.