Holotype (PDD 27077); Isotype (Herb. HK. ZT 69/164): 'Ulva Island, Paterson Inlet, Stewart Island' N.Z.; leg. Horak,23.III.1969'.

Pileus 25-45 mm diam., conico-convex when young later becoming flat, plane, brownish grey to beige-grey, densely covered with small squarrose, concolorous scales, splitting radially, dry, estriate, not hygrophanous. Lamellae emarginate-adnate to decurrent with short tooth, whitish turning greyish, ventricose, moderately distant, gill edge concolorous, even. Stipe 30-60 x 7-9 mm, cylindrical, equal or attenuated towards the base, apex grey towards the base lighter or even whitish, dry, with conspicuous longitudinal fibrils, hollow, fragile, single or grown together. Context grey, unchanging after bruising. Taste and odor not distinctive. Chemical reactions on pileus: KOH, HCl - negative. Spores 6.5-7.5 x 4.5-5.5 µm ovoid, smooth, inamyloid. Basidia 30-38 x 7 µ, 4-spored. Pleurocystidia 70-95 x 14 x 18 µm, fusoid to lageniform, membrane thin-walled, hyaline, occasionally with refractive granules in the plasma, rare.cuticle a trichoderm consisting of fasciculate, cylindric hyphae- (8-16 µdiam.), terminal cells fusoid, uplifted and forming the squamules, encrusted with brown pigment. Clamp connections present.

On soil under Dacrydium, Podocarpus, Weinmannia, etc. New Zealand.

Pileo 25-45 mm laeo, e conico-convexo plano, griseobrunneo vel griseolo, dense squamis squarrosis concoloribus obtecto, sicco. Lamellis emarginato-adnatis, albido-griseis, ventricosis. Stipite 30-60 x 7-9 mm, cylindrico vel attenuato basim versus, albido, apicaliter griseo, sicco, cavo. Odore nullo. Caro haud rubescente. Sporis 6.5-7.5 x 4.5-5.5 µm, ovatis. Pleurocystidiis 70-95 x 14-18 µm, sparsis, fusoideis, hyalinis. Epicute ex hyphis suberectis squamas formantibus, pigmento brunneo incrustato instructis, haud gelatinosis. Septis fibulatis. Ad terram in silvis. Novazelandia.

At first sight N. squarrosa could be taken as H. fornicatus (Fr.) but the N.Z. species is well characterized by its striking squamulose pileus, grey-brown stipe and presence of cystidia. The colour of the pileus never fades to whitish not even near the margin.

Holotypus (PDD 27077): 'Ulva Island, N.Z. leg. Horak, 23.III.1969'.

Pileus -45 mm, conico-convex later becoming expanded to plane; pale brown-grey to argillaceous-grey; densely covered with concolorous small to coarse, squarrose scales, radially splitting towards margin; dry, not hygrophanous, non-striate margin. - Lamellae 14-20 (1 -3) moderately distant, emarginate-adnate to decurrent with short tooth, ventricose; whitish turning pale grey, not reddening on bruising or on exposure, edges concolorous, entire.-Stipe 30-60 x 7-9 mm, cylindrical, equal or attenuated towards base; grey at apex, paler or whitish towards base; dry, with conspicuous longitudinal fibrils, hollow, fragile, single to caespitose. - Context grey, unchanging. - Odour and taste not distinctive. - Chemical reactions on pileus: KOH, HCI - negative. Spores 6.5-7.5 x 4.5-5.5 um, ovoid. - Basidia 30-38 x 7 um, 4-spored. - Pleurocystidia 70-95 x 14-18 um, fusoid to lageniform, membrane thin-walled, hyaline, occasionally with strongly refractive granules in plasma, rare. -Pileipellis a trichoderm of bundled, cylindrical hyphae (8-16 um diam.), terminal cells fusoid, encrusted with brown pigment; clamp connections present (Pl. 1, Fig. 1).

DISTRIBUTION: NZ (STI).

ECOLOGY: Rare; saprobic on soil among litter in, broadleaved-conifer forests. March.

ICON.: Horak (1973: 127).

Neohygrocybe squarrosa is readily recognised by  the strongly squamulose pileus, the grey-brown, hollow, brittle stipe and the conspicuous pleurocystidia on the lamellae.

TYPE: NZ: STI, Ulva Island, under Dacrydium, Podocarpus, and Weinmannia racemosa, 23 iii 1969, Horak, PDD 27077.