Descriptions of Psathyrella gracilis and P. microrrhiza are given. In the former the following forms are recognized: f. gracilis, f. corrugis, f. clavigera, f. albolimbata, and f. substerilis. The variability of both species is stressed and a new character is described that may help to distinguish between the two. Forms, indicating that intermediates between the two species exist, are discussed.