The species was described in 2010.

Currently known from a single site in the Atlantic Coastal Forest near Sao Paulo Brazil.  These forests are among the most endangered in the world, so even though there are likely additional subpopulations of Mycena luxaeterna, its habitat is in decline.

Mycena luxaeterna is currently known from a single site in the Atlantic Coastal Forest: BRAZIL. Sa ̃o Paulo state, Mun. Iporanga, Parque Estadual Turı ́stico do Alto Ribeira,  Poc ̧o da Viu ́va, S24 35.220, W48 37.840, 19 Mar 2007.

Currently known from a single site in a protected State Park.  However, because of significant treats to other potential sites, it is likely that the population is in decline.

Mycena luxaeterna is currently known from a single site in the Atlantic Coastal Forest growing on sticks, rarely on leaves of undetermined dicotyledonous trees in primary Atlantic Forest habitat.

The Atlantic Coastal Forest of Brazil continues to be under threat due to habitat loss due to land transformation.  While the one known site is in a protected park, it is likely that other sites where it may occur are under threat.

Protection of habitat.

Additional fieldwork, especially focused on small saprotrophic fungi is needed to fully document the distribution and population size of this and other similar fungi.

Dennis E. Desjardin, D.E.,  D.J. Lodge, C.V. Stevani, and E. Nagasawa. 2010. Luminescent Mycena: new and noteworthy species. Mycologia 102: 459-477.