These 'Velvety Psathyrellas' were found clustered together along a sandy dirt road. The cap of this species is covered in flat orange-brown fibers and scales, which are darker on the disc (cap center). At the cap margin you can see the characteristic remains of the partial veil. The gills are attached, close and pale yellow to rusty brown and maturing with spore dispersal to dark brown. Below the whitish hairy ring zone, the fragile and hollow stipe is tawny with orange-brown fibers. Like all Psathyrellas, the spore print is dark. In this case, it is brownish-black. Psathyrella velutina is edible.