Seedling blight was observed in nursery beds of rice variety Sarala at Central Rice Research Institute, Cuttack during wet season of 2009. The causal organism for this disease was Sclerotium rolfsii. Seedlings were affected in irregular patches. Stem base and roots of affected seedlings turned brown. The growth of infected seedlings was retarded followed by yellowing of leaves and seedling mortality. White mycelial growth and white small round sclerotia were produced on roots as well as on stem bases. The sclerotia later turned brown. Sequence alignment was done for identifying the microbes.