The excessive use of chemical fertilizers and pesticides have caused several negative impacts on the environment and human health. They degrade soil fertility, build up resistance on pathogens, inhibit microbial activities and also enhance greenhouse gas emission. It is impossible and inappropriate to control plant pathogens by using chemical pesticides alone. Emphasize should be given towards organic fertilizers and pesticides to attain sustainability in agriculture. The use of Trichoderma is slowly increasing in the recent years among progressive farmers as an alternative to chemical fertilizers and pesticides. Slow rate of multiplication and colonization, susceptible to biotic and abiotic stresses, incomplete elimination of pathogens and high cost are the major problems behind its poor adoption among the farmers. To overcome these challenges different strains of Trichoderma should be identified which can multiply and colonize rapidly, least affected by environmental conditions and having wide host range on pathogens. In addition, farmers should be made aware about the importance of Trichoderma in agriculture through various extension facilities for its wide scale adoption. Trichoderma can be the viable and sustainable alternative which acts as biofertilizer, bioremediator and biocontrol agent. Nevertheless, the use of Trichoderma is limited on research activities and its application at farmers' level is not yet satisfactory. Thus, this study based on critical analysis of the research works from worldwide researchers aims to reveal the present scenario of the use of Trichoderma, its importance, modes of action, methods of application and multiplication, challenges for wide scale adoption and its appropriate solutions.