Stem rots caused by Rhizoctonia solani and Sclerotinia sclerotiorum have been known as devastating diseases in balloon flower plants. Antifungal activities of four fungicides, azoxystrobin, polyoxin B, trifloxystrobin and validamycin A were evaluated in vitro, showing effective suppression with mycelial growth of the fungal isolates on PDA media. Efficacies of the four fungicides were also demonstrated in stem tissues of balloon flower plants against R. solani and S. sclerotiorum. A commercially available Bacillus subtilis strain Y1336 was tested in terms of antagonistic biological control of stem rot disease of balloon flower plants. The bacterial strain revealed its antifungal activities against R. solani and S. sclerotiorum demonstrated by dual culture tests using paper discs and two plant pathogenic fungi on PDA media, as well as by plant inoculation assay, indicating that this antagonistic bacterial strain can be incorporated into disease management program for balloon flower stem rot diseases together with the four chemical fungicides.