Sheath rot of rice incited by Sarocladium oryzae (Sawada) Gama and Hawksworth is one of the important diseases of rice. Out of eight fungicides tested Saaf 75 WP (Carbendazim 12% + Mancozeb 63%) and Antracol 75 WP (Propinels 70 WP) inhibited mycelial growth of the fungus by more than 80 percent at 200 ppm concentration as well as reduced the disease severity and increased grain yield under field condition. Among the bio-pesticides Achook (Azadirachtin 0.15% WP) and Tricure (Azadirachtin 0.03%) inhibited the mycelial growth up to 49 and 47 percent, respectively at 10% concentration. Spraying of bio-pesticides resulted in 12.9 to 21.4 percent disease control only.