Summary:
Features include 1) resupinate growth on conifer wood, or bending out from a resupinate surface to form a cap, or predominantly shelf-like, 2) if present a cap that is brown to grayish brown, zoned, and felty, 3) a spore-bearing surface that is grayish, grayish brown, brownish or brownish orange, and velvety, often with a whitish bloom, smooth to warted or wrinkled, 4) a black reaction of the spore-bearing surface to KOH, 5) spores that are elliptic to cylindric, smooth, inamyloid, and colorless to pale yellow, 6) cystidia of 2 types: a) hymenial cystidia (projecting beyond hymenium but eventually embedded) that are cylindric to narrowly clavate, colorless to pale yellow at the apex, darkening to yellowish brown toward the base, becoming entirely dark brown when embedded, smooth or encrusted with colorless granular material, and b) tramal cystidia that are small, embedded in the subhymenium and the lower hymenium, but occasionally projecting beyond hymenium, clavate to cylindric, often with adventitious septa, sometimes constricted slightly and occasionally monilioid in part, yellowish brown throughout, and smooth or encrusted with granular material, 7) hyphidia that are rare and inconspicuous, cylindric to narrowly clavate, colorless to pale yellow, often with adventitious septa, and 8) a monomitic hyphal system - 5 layers may be present: a) tomentum, composed of 2 types of generative hyphae, b) a dense nearly black cutis, c) a subiculum, horizontally arranged and agglutinated hyphae of two types with clamp connections, the first thin-walled and freely branched, and the second thick-walled and rarely branched, this second type giving rise to tramal cystidia that curve toward hymenium to form a dense palisade, d) subhymenium sometimes absent in thin specimens, with one or several layers of vertically arranged hyphae with clamp connections, collapsed hymenial elements and cystidia, some specimens with clusters of agglutinated spores, and e) the hymenial layer. It is common (Nakasone).

Microscopic:
SPORES 11.9-15.5 x 4.7-5.6(6) microns, (averaging 12.6 x 5.0 microns in coastal states and provinces, 14.5 x 5.3 microns in inland states and provinces), elliptic to cylindric (adaxial side straight to convex), smooth, inamyloid, slightly thick-walled, colorless or occasionally pale yellow, often embedded in the hymenium; BASIDIA 4-spored, (66)85-100(130) x 5-8(10) microns, narrowly clavate, narrower at base (2-3.5 microns wide), thin-walled and colorless throughout or thin-walled and colorless at apex then becoming slightly thick-walled and pale yellow toward base, occasionally with adventitious septa, basal clamp connection present; CYSTIDIA of two types: hymenial and tramal, a) hymenial cystidia 145-350 x (3.5)5.5-7.5(10), tapering to 3-3.5 microns wide at base, extending 35-80 microns beyond hymenium but eventually embedded in specimens with thickening subhymenia, "arising from subhymenium and upper subiculum", cylindric to narrowly clavate, thin-walled to slightly thick-walled at apex, thicker-walled at mid-section and thinning toward base, walls up to 2-3 microns thick, colorless to pale yellow at apex, darkening to yellowish brown toward base, becoming entirely dark brown when embedded, smooth or encrusted with colorless granular material, b) tramal cystidia small, arising from subiculum and subhymenium, embedded in subhymenium and lower hymenium, but occasionally projecting up to 30 microns beyond hymenium, up to 180 microns long and (4)6-10 microns wide, tapering to 3-3.5 microns at base, clavate to cylindric, "often with adventitious septa, sometimes constricted slightly and occasionally monilioid in part", slightly thick-walled or thick-walled, yellowish brown throughout, smooth or encrusted with granular material; HYPHIDIA rare and inconspicuous, up to 80 microns long, 4-5 microns wide, cylindric to narrowly clavate, thin-walled to slightly thick-walled, colorless to pale yellow, often with adventitious septa, with basal clamp connection; HYPHAE monomitic: 5 layers may be present - 1) abhymenial tomentum (may be absent in some specimens), 180-200 microns thick composed of 2 types of generative hyphae: a) (2)3.5-7 microns wide, colorless or yellowish brown "with scattered clamp connections and adventitious septa, rarely branched", b) 1.5-3 microns, sclerified, slightly thick-walled to thick-walled, "with rare clamp connections and scattered adventitious septa", 2) a dense nearly black cutis 20-150 microns thick, 3) subiculum 150-800 microns thick, of horizontally arranged and agglutinated hyphae of two types: a) 2-3 microns wide, colorless, thin-walled, nodose-septate, freely branched, b) 3-6.5 microns wide, thick-walled, yellowish brown, nodose-septate, rarely branched, this second type giving rise to tramal cystidia that curve toward hymenium to form dense palisade, 4) subhymenium up to 450 microns thick, "sometimes absent in thin specimens", with one or several layers of "vertically arranged, thin-walled, nodose-septate hyphae", collapsed hymenial elements and thick-walled, yellowish brown tramal and hymenial cystidia, some specimens with clusters of agglutinated spores, 5) hymenial layer 100-130 microns thick, (Nakasone)

Notes:
Veluticeps fimbriata has been found in BC, WA, OR, ID, AK, AZ, CA, CO, and WY, (Ginns).