Found in mixed conifer and hardwood forest under damp conditions; disturbed area along foot path. August and October. Growing from moss covered soil. Cap has a yellow/gold background with fine brown scales covering the cap surface. Widely spaced, attached gills are white with short gills near cap margin. Cap context thin and white. The yellow stem of Hygrocybe caespitosa is more or less equal, often flattened or split. Odor and taste unremarkable. Grows in tufts (cespitose), hence the specific epithet caespitosa. Spore print white. It’s out there, but not common.