Trichoderma spp. is free living filamentous fungi. They are cosmopolitan and versatile in nature. They have the potential to produce several enzymes that can degrade the cell wall materials. Also, they release a number of fungi toxic substances that can inhibit the growth of the fungal pathogens. Many mechanisms have been described on how Trichoderma exert beneficial effects on plants as a bio-control agent. But due to its versatile nature, its potential cannot be explored to its full extent. The fungus is also a decomposer of cellulosic waste materials. Recent discoveries show that the fungi not only act as biocontrol agents, but also stimulate plant resistance, and plant growth and development resulting in an increase in crop production. The biocontrol activity involving mycoparasitism, antibiotics and competition for nutrients, also induces defence responses or systemic resistance responses in plants. These responses are an important part of Trichoderma in biocontrol program. Trichoderma spp. has been widely used in agricultural applications due to its well known biological control mechanism. The usage of this microbial inoculant in Trichoderma-based products attracts the attention of researchers to discover more on other potential benefits of Trichoderma spp.