Saprotrophic and possibly parasitic. Grows on dead and dying hardwoods and conifers from July through autumn.
Yellow cap is slimy or sticky and is covered in conspicuous red-brown scales.
Attached gills are yellow and become rusty-brown as brownish spores mature. Stipe is dry and scaly below fibrous evanescent annulus and whitish above.
Edible, but easily confused with the inedible Pholiota limonella.