Bacterial strains with ability to suppress Colletotrichum falcatum were isolated from the rhizosphere of sugarcane. Thirty nine candidates, chosen on the basis of in vitro antagonism, inhibited C. falcatum growth by 15-65% on test plates. Twenty two isolates causing 50% or more in vitro inhibition were screened for their root colonization ability and biocontrol activity on micropropagated sugarcane plants under greenhouse conditions. Twelve strains suppressed red rot infection in plantlets, but no significant correlation was observed between in vitro pathogen inhibition and in vivo disease suppression.However, isolates showing root colonization over 5.2 log 10 CFU g -1 of soil showed highest suppression of C. falcatum and reduction of red rot disease. Six strains with the capability to maintain a significant population in the sugarcane rhizosphere and with a high potential to control red rot were identified by 16S rDNA as Ochrobacterum intermedium NH-5, Pseudomonas putida NH-50, Bacillus subtilis NH-100, Bacillus subtilis NH-160, Bacillus sp NH-217 and Stenotrophomonas maltophilia NH-300.