Panaeolus tropicalis, also known as Copelandia tropicalis, is a close relative to Panaeolus cyanescens. The preferred habitat of this strain of Panaeolus is dung (from wild animals or cow dung). In the wild, Panaeolus tropicalis has been found in Hawaii, Central Africa, Mexico and Cambodia.

The cap of P. tropicalis is around 2 cm broad, has a convex shape and a grayish color that turns into a yellowish brown towards the center and the margins. The stem is between 8 and 12 cm high and 2 to 3 cm thick with a grayish color that readily turns bluish when touched. The spores are dark violet to black and internally granulated (feature that has been used to differentiate Panaeolus tropicalis from Panaeolus cyanescens).

Even though picky about its habitat, it is said that Panaeolus tropicalis fruit easily even if the circumstances are not ideal, making it one of the favourite exotic magic mushrooms for cultivation.