Verticillium lecanii was found parasitizing rust, early and late leafspot pathogens of peanut in the glasshouse at ICRISAT Center and in fanners' fields in the Indian States of Andhra Pradesh, Karnataka and Tamil Nadu. In inoculation experiments, there was a significant reduction in the extent of rust and late leafspot development on peanut leaves inoculated with V. lecanii. Receptivity and percentage leaf area damage of rust and late leafspot were reduced when inoculated with V. lecanii. The potential use of V. lecanii in biological control of rust and leafspot diseases of peanut is discussed.