The efficacy of Paecilomyces lilacinus strain UP1 as biological control agent of Meloidogyne incognita attacking tomato was evaluated under screenhouse condition pot experiments. P. lilacinus was formulated on rice substrate in powder form. Root weight, gall index rating, number of galls, egg masses and nematodes per one gram root sample were determined and per cent reduction in gall number was computed. Root weight and gall index ratings were significantly higher in untreated plants than those with P. lilacinus and with the commercial fungicide Nemacur. Number of galls, nematodes and egg masses per one gram root sample were significantly reduced by the application of P. lilacinus at all levels and this was comparable with Nemacur. However, egg mass count in plants treated with the lowest concentration of the biocontrol agent was not significantly different from the uninoculated control. Per cent reduction in gall number was the highest at treatment with 7.92 x 10 6 spores per ml of P. lilacinus.