Dollar spot is a fungal disease of grass caused by Sclerotinia homeocarpa, Lanzia sp. and Moellerodiscus sp. The disease is most prevalent during cool spring and fall temperatures of 60 to 80 degrees Fahrenheit.
The disease is characterized by the appearance of 1- to 2-inch round spots of dead grass in lawns. The dead areas are either straw-colored or have a bleached look. As disease progresses, the spots get larger and merge together to create wide, irregular patches. There are often fine, cobweb-like threads visible on the grass during early morning.
Avoid overfertilizing soil and thatch buildup. Apply a top-dressing of compost to minimize disease symptoms and increase mowing height. Chemical control options include the use of iprodione, chlorothalonil, fenarimol and triadimefon.