Most lichens are formed by a partnership between an ascomycete fungus and a photobiont which can be a green algae and/or a cyanobacterium. Multiclavula mucida is formed by the association of a basidiomycete fungus in the Cantharellales (Multiclavula) and a green algae (Coccomyxa). These types of lichens are known as Basidiolichens. The species is commonly found on decorticated rotting wood in moist forests and on moss growth at the base of trees.