Ischadites lindstroemiHinde 1884 is described from the Ordovician Daylesford Formation (lower part of the Bowan Park Group) of central western New South Wales. The species characterises a distinctive unit in the formation, occurring in bands throughout the unit. From a study of the associated lithofacies and their stratigraphic distribution in the limestones, an interpretation of the environment in which the species lived is presented. The species is considered to have inhabited a shallow‐water, lime‐mud environment, which was off‐shore and marginal to calcarenite shoals.