Plant-parasitic nematodes are major pests affecting many economically important crop productions throughout the world. Some chemicals are widely used against the phytonematodes. Because of hazardous effects of these compounds on human beings, animals and on the environment, there is a need to develop other control strategies. Biocontrol of phytonematodes is an important method among environment-friendly measures of nematode management. There are some soil-inhabiting fungi that have biocontrol potential on phytonematodes, which can be used for nematode management. The fungus Metarhizium anisopliae, originally is an entomopathogenic bioagent has been utilizing as bionematicides. The fungus produces some secondary metabolite which may play a role in pathogenicity. Biocontrol potential of this fungus on some phytonematodes has been reported and its utilization is a major approach towards sustainable and environment friendly agricultural production.