Dactylellina phymatopaga is a nematode-trapping fungus which traps, kills and parasitizes nematodes. The rice root-knot nematode, Meloidogyne graminicola, is an important plant-parasitic nematode that threatens rice production worldwide. Therefore, it is most important to find new substitute for chemical control of M. graminicola. The present study aimed to investigate the in vitro trapping, germination and nematophagous ability in soil and fungus efficacy to reduce the number and biomass of developing stages of M. graminicola in rice roots. Isolates of D. phymatopaga were found to produced sessile adhesive knobs on growing hypahe to trap and paralyze M. graminicola J2 up to 98.8 % within 120 h of inoculation, in in-vitro conditions. Test for germination and nematophagous activities in various soils showed that spores of D. phymatopaga frequently germinate in soil with formation of adhesive sessile knobs on their germ lings, capturing and parasitizing nearby free living nematodes. Application of D. phymatopaga in M. graminicola-infested soil at the time and prior to rice sowing showed significant reduction in the number of root galls, number and biomass of developing stages of M. graminicola in rice roots (62.65–80.73 %) increasing plant health as compared to plants grown in nematode infested soil. Application of D. phymatopaga 7 days before sowing showed the highest biocontrol ability by decreasing in the nematode biomass in the associated rice roots per plant and the expended nematode-to-root biomass ratio (NB:RB). The results showed that the nematode-trapping behavior of D. phymatopaga yields a bio-management potential in reducing the number of developing stages of M. graminicola and their biomass in rice roots.