Fifty five species of medicinal plant materials were tested for their antifungal activity in vitro against Rhizoctonia solani AG 2-1 and Trichoderma harzianum to select plant species that can be used to improve the biocontrol efficacy of T. harzianum. Six species were effective against R. solani AG 2-1 but were also antagonistic to T. harzianum, except for Cinnamomum loureirii stem bark (CSB). CSB inhibited mycelial growth of R. solani AG 2-1 by 73.7% but showed an inhibitory effect on mycelial growth of T. harzianum by only 2.2%. Scanning electron microscophs showed that the CSB treatment resulted in deformed R. solani AG 2-1 hyphal cells, and transmission electron microscophs revealed degenerated cell structures such as degenerated cytoplasm and disentangled cell wall and the accumulation of electron-dense inclusions (asterisks) in the CSB treatment. The biocontrol efficacy of radish damping-off increased greatly following the combined treatments of T. harzianum and CSB and the combined treatment increased efficacy from 6.4-23.1% to 37.1-87.3% compared with either treatment alone. CSB did not affect T. harzianum population growth, as it was almost the same in rice-bran peat medium (culture) amended with 0.1% and 1.0% CSB powder as in non-amended medium. The formulation of T. harzianum in rice-bran peat medium amended with CSB powder reduced the severity of radish damping-off by 80.6%, suggesting that T. harzianum and CSB can be formulated as a biocontrol product for the control of R. solani AG 2-1.