Argemone mexicana L. (Papaveraceae), a tropical annual weed, is phytotoxic to many crop species. This study was designed to examine the allelochemical and nematicidal potential of A. mexicana and to better understand the role of this weed in the ecosystem. A methanol-soluble extract of the leaf material caused greater juvenile mortality of Meloidogyne javanica than did ethyl acetate or hexane extracts indicating the polar nature of the toxins. Decomposing tissues of A. mexicana in soil at 50 g kg−1 were highly deleterious causing 80% mortality of tomato plants. At 10 g kg−1 plant growth was enhanced, while at 30 g kg−1 plant growth was substantially retarded. M. javanica population densities in the rhizosphere and in roots, and gall formation were significantly suppressed when 10, 30 or 50 g kg−1A. mexicana was allowed to decompose in the soil. To establish whether decomposition was necessary to produce phytotoxic symptoms, or whether the shoot extract alone could interfere with plant growth, an aqueous shoot extract was applied to soil. Whereas a 50% extract promoted plant growth, a 100% (100 g/500 mL distilled water) concentration significantly reduced plant height, and fresh weights of shoot and root. In general, decomposing plant material caused greater phytotoxicity compared to the aqueous extract. Addition of N as NH4NO3 partially alleviated the phytotoxic action of A. mexicana,and also reduced severity of root-knot disease. Adding Pseudomonas aeruginosa to soil amended with A. mexicana resulted in decreased density of M. javanicain the rhizosphere and in tomato roots, suppressed galling rates and enhanced plant growth.