Fruiting body 0.5-1.5 (2) mm broad, compressed-globose to cushion-shaped, rounded in outline except when deformed from mutual pressure; sessile to substipitate, if the latter, then peg-shaped to turbinate in profile, anchored by thin, translucent-white, root-like projections; surface convex, occasionally with shallow folds, glabrous to minutely pruinose, yellow-orange, becoming yellowish-brown, drying dingy orange-brown; context gelatinous, yellowish, reviving after drying; odor and taste not distinctive.
Basidia tuning-fork shaped; basidiospores 10.0-13.0 x 4.5-6.0 microns, sausage-shaped, three-septate at maturity; clamps absent, some terminal hyphae encrusted; spore deposit not seen.
Gregarious to clustered, often in large colonies, on both conifers and hardwoods; fruiting throughout the mushroom season after periods of rain; common.
Dacrymyces capitatus is closely related to Dacrymyces stillatus and like the latter forms small, cushion-shaped fruiting bodies. It differs, however in possessing a rooted base, and smaller basidiospores. Another distinguishing feature, though not definitive, is the tendency of Dacrymyces stillatus to produce "imperfect" fruitings, i.e. where only conidia (arthrospores) are formed, typically in chains. These type fruitings are common in the S.F. Bay Area. At other times, however, sexual fruitings may predominate, or both sexual and asexual spores may occur on the same fruiting body.