We have investigated the presence of fungal egg-parasites in Spanish soils with plant endoparasitic nematodes. Nine out of 68 samples (13%) yielded fungal parasites. The most common (seven strains) was Pochonia chlamydosporia var. chlamydosporia (= Verticillium chlamydosporium var. chlamydosporium), but Lecanicillium lecanii (= Verticillium lecanii) and Paecilomyces lilacinus were also found. Most strains were from cyst nematodes (Heterodera avenae or Heterodera schachtii). Biological factors related with the development and performance of these fungi as biocontrol agents were assessed in laboratory tetsts. Germination for most strains was around 90-100%. Higher biomass values were obtained, for most fungal strains, with complete or yeast extract peptone-glucose liquid media. P. lilacinus and L. lecanii showed the highest sporulation rates (1.0 x 10(9); and 1.5 x 10(10); conidia/g mycelium). All strains had optimum growth at 25 degrees C. High temperature (40 degrees C) was lethal to all fungi but low temperature (5 degrees C) allowed growth of L. lecanii. Most strains showed best growth close to pH 7. Several P. chlamydosporia strains produced diffusible pigments close to pH 3. Lack of moisture (aw = 0.887) in growth medium reduced but never arrested fungus growth. Proteolytic activity was, for all strains, the earliest and highest enzymatic activity. Amylolytic and pectinolytic activities showed the lowest values and the latter was undetectable for most strains. Pathogenicity (70-100percnt; egg infection) and severity (35-40 penetrating hyphae/egg) on Meloidogyne javanica were high for most strains tested. Our results show that agricultural soils in Spain contain fungal parasites susceptible to be biocontrol agents for plant-parasitic nematodes.