Trichoderma harzianum-THN1 parasitising the egg masses of root knot nematode Meloidogyne incognita was isolated from galled mulberry roots and evaluated for its potential to control root knot disease. In pot experiments root galling was reduced and leaf yield increased significantly following soil treatment with T. harzianum-THN1. The extracts obtained from the soils inoculated with T. harzianum-THN1 drastically inhibited the hatching of nematode eggs and the effect was irreversible even after the eggs were transferred to fresh water. The fungus was equally effective in controlling the disease in nematode infested mulberry garden under field conditions which was significant over the most commonly used egg parasitic fungus Paecilomyces lilacinus. The disease reduction recorded with T. harzianum was on par with the plants treated with the nematicide Carbofuran. The results suggest that T. harzianum- THN1 could be used as a potent ecofriendly biocontrol agent against M. incognita in mulberry without any residual toxicity to silkworms. T. harzianum- THN1 can form an important component of integrated disease management package in mulberry cultivation.