The specific epithet nidiformis is derived from the Latin terms nīdus 'nest' and forma 'shape' or 'form', hence 'nest shaped'. Lampas is derived from the Greek lampas/λαμπας 'torch'. Common names include ghost fungus and Australian glow fungus. Drummond reported that the local Aboriginal people were fearful when shown the luminescent fungus and called out chinga, a local word for spirit; Drummond himself likened it to a will-o'-the-wisp. On the Springbrook Plateau in southeastern Queensland, the local Kombumerri people believed the lights to be ancestors and gave the area a wide berth out of respect.
