Summary The entomopathogenic nematode (EPN), Heterorhabditis bacteriophora, is an efficient biological control agent against several economically important insect pests. Recent research has assessed the possibility to correlate desired beneficial traits with genotype data to pave a way for marker-assisted breeding approaches. A collection of H. bacteriophora WT inbred lines has been phenotyped in this framework for stress- and virulence-related traits. However, these traits are rarely combined in a single line. Thus, unifying these traits in commercial strains is of high priority. This investigation unified beneficial traits in hybrid pools through marker-assisted breeding using single nucleotide polymorphisms (SNPs) associated with reproductive potential, longevity, virulence and cold tolerance. Recombinant inbred lines (RILs) generated from a cross between a stress tolerant WT inbred line (XX21) and a line high in in vitro reproduction potential (IL3) were genotyped via SeqSNP and screened for SNP markers associated with beneficial traits. Thereafter, a genotypic pool (X21L3) comprising 22 ILs was formed. The X21L3 pool was subsequently evaluated for the target traits in comparison with the cross parents and a commercial strain HB4. An improvement of oxidative stress tolerance at 2°C (cold tolerance) was recorded with X21L3 surviving 1 day longer than the best performing parent (XX21). The hybrid pool also survived 1 day longer than the least performing parent IL3 for the trait longevity at 25°C under oxidative stress conditions. A higher dauer juvenile (DJ) recovery (58%) and DJ yield (209 000 DJ ml−1) than the least performing parent XX21 was recorded for the pool. The storage stability in diatomaceous earth formulation at 2°C and 7.5°C was also improved by 2 and 5 days, respectively, in comparison to the least performing parent XX21. This study depicts the potential of precision marker-assisted breeding for beneficial trait improvement of H. bacteriophora.