Xanthorrhoea malacophylla is a species of grasstree of the genus Xanthorrhoea. It is endemic to New South Wales, Australia. Mature plants form a single or branched trunk that ranges between 2 and 6 metres in height. The grass-like leaves, which are usually around 3 mm wide, are distinguished from other species by their softness and sponginess. The flowers appear between May and September in scapes that are between 1.3 and 1.8 metres long.