In the first part of this review article (Valencia & Khachatourians, 1998) we presented the special opportunity that entomopathogenic fungi (EPF) offer for integrated pest management (IPM) in the Latin Americas. As expected, along with the opportunities, there are challenges for the use of EPF. First that there are only two fungi, Beauveria bassiana and Metarhizium anisopliae, for which sorne prerequisite knowledge of basic and applied mycology for industrial research and development (R & D) are in place. Because of precedent setting leadership in the development of certain EPF, e.g., B. bassiana in 1PM, Latin America stands to contribute to and gain from future discovery research coupled to a strong and dependable industrialization effort. There is also need to develop the framework for public acceptance, newer commercialization potential and widespread use of EPF in 1PM. Here we examine issues that are prerequisites for industrial R & D.