Woolly milk-cap belongs to the milk-cap family. The typical species of this genus, after boiling, is edible. However, in Latvia, people often experience poisoning with this mushroom when consuming it without boiling.

Woolly milk-cap is commonly found growing alongside mature and old birch trees, and it is also noted in aspen and spruce stands. It grows in scattered groups in deciduous and mixed forests, in bright areas, often in grassy or overgrown clearings, and along roadsides in acidic soils. In Latvia, it is typically encountered from July to November.

It is commonly used for pickling and salting. If consumed raw, symptoms of poisoning, such as abdominal pain, diarrhea, and vomiting, typically appear about an hour after ingestion. These symptoms usually subside within a few days without specific treatment.