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Bacterial antagonists of both fluorescent and nonfluorescent groups were screened for in-vitro inhibition of the rice sheath blight (ShB) fungus Rhizoctonai solani Kuhn and chitinase production in the laboratory. Twelve percent of the total 1,757 strains screened inhibited R. solani while 31% of the total 1,366 strains tested were positive for chitinase activity. The efficient strains were then evaluated in the field for ShB suppression. Two strains from each of the three seed-bed experiments were chosen for the field test in a hot-spot location. Additional treatments were a Bacillus and validamycin, the fungicide. There was no correlation between chitinase activity in the antagonists and ShB suppression in the seed-bed or field plots. Two most efficient Pseudomonas putida and P. fluorescens strains afforded 68 and 52% ShB suppression while validamycin afforded 27% disease control.