 Mycena galericulata is saprobic , and grows on decaying hardwood and softwood sticks , chips , logs , and stumps . It can also grow from submerged wood , which may give it a terrestrial appearance . It typically grows in small clusters or sometimes singly . The fungus fruits from late spring to early winter . A study of litter @-@ decomposing fungi in a coniferous forest in Finland showed that M. galericulata produces extracellular hydrolytic enzymes in the humus and eluvial soil , including β @-@ glucosidase , β @-@ xylosidase , α @-@ glucosidase , butyrate esterase and sulphatase . The enzymes form complexes with inorganic and organic particles in the soil and break down ( depolymerize ) biopolymers such as cellulose , hemicellulose , and starch , which contributes to the cycling of carbon and nutrients . The presence of lead contamination in the soil decreases both the growth and the extracellular hydrolytic enzyme activity of M. galericulata . 
