Chilli is a widely consumed crop throughout the world. However, chilli anthracnose is a major constraint in chilli production leading to huge economic losses worldwide. Colletotrichum is a large genus of Ascomycete fungi, containing species that cause anthracnose diseases on a wide range of crops of economic value. This review is aimed at critically and accurately examining the taxonomic identification of Colletotrichum species by morphological and molecular approaches as well as assessing their management options. The use of appropriate integrated management practices, such as cultural, mechanical, chemical, and biological control, are important in chilli anthracnose disease prevention and control. Emphasis is laid on the use of biological control because it is cost effective and eco-friendly, and is an appropriate approach for disease management. The use of resistant cultivars is the cheapest, easiest, safest, and most effective means of controlling crop diseases. But, since no resistant cultivars of chilli have been developed and commercialized, it is very important to develop biological management strategies. Further studies leading to integrated disease management strategies need to be carried out.