Panus fasciatus grows on dead wood, and is easily identificable by its hairy cap. It mainly in the drier regions of Victoria, but has also been found in New South Wales in the Barrington Tops National Park and Chichester State Forest. The margins of the hairy caps are often inrolled. The purple-tinged brown gills occasionally divide or fork and continue for a distance down the stems. In warm weather the tough, leathery caps dry out, becoming hard and brittle, but rehydrate to their former shape and texture after rain.