Significant seedling loss in forest nurseries can occur due to fungal pathogens. Fungicides help but don`t eliminate the problem. The U.S. Forest Service has stated a preference for biological disease control systems if they are effective. Biocontrol technology is available for fungal root pathogens but has not been applied to forest nurseries. This project will evaluate combining new technologies of fungal protoplast fusion and seed coating systems with established mycorrhizal fungus inoculation techniques for an effective biocontrol system. Research will test three biocontrol fungi and two mycorrhizae on five tree species for disease control relative to fungicide application. Significant disease reductions with biological vs. chemical systems is anticipated. This will stimulate private investment for product development. Domestic as well as foreign markets could open for forest, horticultural and food crop systems using biological disease control technology.