This species is known from only a single locality, but from multiple collections, in India, Kerala State, Trivandrum District, Palode, JNTBGRI campus. This species is not thought to be directly threatened, however Vateria indica, with which this species is known to associate, is itself threatened by housing, urbanization, livestock farming and ranching, and non-timber agriculture. Further research is needed in order to determine the extent to which Craterellus inusitatus is threatened in its known locality. This species has been found growing in scattered groups on living herbaceous plant stem, leaves of Pothos scandens (Araceae), on exposed root of Hopea parviflora, or on seedlings of Vateria indica and Hopea parviflora (Dipterocarpaceae). This species has also been found on rocks and soil in tropical evergreen forest, in the months of August–November. Until further research regarding this species’ wild distribution, habitat preferences, and potential threats is completed, this species is listed as DD.

The holotype of this species was found in India, Kerala State, Trivandrum District, Palode, JNTBGRI campus, on the 20th September 2017. Additional specimens of this species were collected at this same locality on 31st August 2007, 13th September 2017, 20th September 2017, 21st September 2017, 22nd September 2017, 3rd October 2017, 7th October 2017, 7th November 2017, and on the 21st September 2017.

Information regarding this species’ specific habitat preferences, current distribution, and potential threats is thought to be lacking. Therefore, until further research is carried out, the population trends of this species remain uncertain.

This species has been found growing in scattered groups on living herbaceous plant stem, leaves of Pothos scandens (Araceae), on exposed root of Hopea parviflora, or on seedlings of Vateria indica and Hopea parviflora (Dipterocarpaceae). This species has also been found on rocks and soil in tropical evergreen forest, in the months of August–November.

The threats which may be affecting this species are unknown at this time, however Vateria indica is threatened by housing, urban development, livestock farming and ranching, and non-timber crops. Further research is needed in order to confirm whether these threats are likely to significantly affect Craterellus inusitatus.

A deficiency in information regarding this species’ habitat preferences, distribution, and threats means that no conservation action can be recommended for this species at this time. Further research into these areas is required in order to build an accurate assessment of this species.

Further research into this species’ habitat preferences, potential threats, and wild distribution is required in order to build an accurate assessment of this species.