This species is one of the more common Hygrocybe  found on all islands where
this habitat type persists.  It is collected only in montane native forests and is considered
by us an endemic species.  Basidiomata are consistently orangish yellow to deep yellow,
always lacking red tones, and have very broad, constricted basidiospores and broad
pileipellis hyphae. Hygrocybe lamalama  belongs in sect. Coccineae,  subsect. Coccineae
where it is allied with H. obrussea  (Fr.: Fr.) Wünsche and H. constrictosporus  Arnolds
from Europe, H. venusta  Hongo from Japan, and Hygrophorus parvulus  Pk. from
North America.  The absence of reddish tones inbasidiomata, broad basidiospores and
broad pileipellis elements are reminiscent of species in subsect.Squamulosae,  such as
H. cerinolutea  Horak from New Zealand, however, H. lamalama lacks a squamulose
pileus.  The epithet "lamalama" is Hawaiian for "to glow as if touched by the sun."