Cephaleuros species consist of branched filaments
that comprise a thallus in the form of irregular discs.
The thallus grows below the cuticle or sometimes below
the epidermis of the host plant. This pigmented thallus
(orange to red-brown) consists of a prostrate portion that
is branched irregularly with irregular cells and an erect
portion of unbranched hairs, with cylindrical cells, sterile
or fertile, protruding through the cuticle