Ethanolic extract from the leaves and young shoot tips of Bacopa monnieri (Scrophulariopsis) was investigated for their antifungal activities. The growth inhibition of the fungi were determined using disc diffusion assay against sixteen fungal strains, out of which the extract showed significant inhibition of Rhizoctonia solani, Curvularia lunata, Alternaria brassicicola and Acremonium kiliense. Solvent extract of the plant material showed inhibitory activity against these microorganisms at 100-200 Î¼g mL-1 concentration level. Thin layer chromatographic analysis of the plant extract showed the fractions of alkaloids and natural lipids which may be the important factor in causing the inhibitory effect. The seed treatment by this plant extract showed more effectiveness in reducing disease in rice plants against the damage caused by Rhizoctonia solani, as compared to foliar spray treatment.