This shrub grows 1.5 to 2.5 metres (5 to 8 ft) in height, spreading to 4.6 m (15 ft) in width at maturity. Young plants display upright oval growth, but the plants spread and mound with age.

M. stellata blooms at a young age, with the slightly fragrant 7–10 cm (3–4 in) wide flowers covering the bare plant in late winter or early spring before the leaves appear. There is natural variation within the flower color, from white to rich pink; the pink also changes from year to year. The flowers are star-shaped, with at least 12 thin, delicate petal-like tepals, some cultivars having more than 30.

The leaves open bronze-green, turning to deep green as they mature, and yellow before dropping in autumn. They are oblong and about 10 cm (4 in) long by about 4 cm (1.6 in) wide.

M. stellata produces a reddish-green, knobby aggregate fruit about 5 cm (2 in) long that matures in early autumn. Mature fruit opens by slits to reveal orange-red seeds, but the fruits often drop before developing fully.

Young twigs have smooth, shiny chestnut brown bark, while the main trunks have smooth, silvery gray bark. Like the saucer magnolia (Magnolia × soulangeana), it is deciduous, revealing a twiggy, naked frame in winter. Plants have thick, fleshy roots which are found fairly close to the surface and do not tolerate much disturbance.