The efficacy of the fungus Paecilomyces lilacinus on the root-knot nematode, and its economic returns in tomato were determined in the field. Paecilomyces lilacinus reduced M. incognita soil and root populations, parasitized the nematode eggs, reduced root galling, and increased crop yield and profit. This organism did not affect the population levels of Rotylenchulus reniformis or Helicotylenchus dihystera. Carbofuran 10G did not reduce the population levels of any of the nematode species.