The root-knot nematode, Meloidogyne incognita caused greater reduction in plant growth, chlorophyll content, water absorption capacity of roots and root nodulation of chickpea and pigeonpea and bulk density of pigeonpea stem, than the reniform nematode, Rotylenchulus reniformis. These nematodes inhibited each other in concomitant infections. However, both the nematodes together caused more damage to the test plants than was caused by either of them singly, but it was less than the sum total of the damage caused by them individually. Oil-seed cakes of neem/margosa (Azadirachta indica), castor (Ricinus communis), mustard (Brassica campestris), rocket salad/'duan' (Eruca sativa) were found to be highly effective in reducing the multiplication of nematodes and consequently plant growth, the water absorption capacity of the roots, root nodulation and bulk density of woody stem of pigeonpea increased significantly. The test nematodes were found to be less damaging in the presence of Paecilomyces lilacinus. The multiplication rate of nematodes was less in presence of P. lilacinus as compared to the absence of P. lilacinus. Damage caused by the nematodes was further reduced when P. lilacinus was added along with oil-cakes. Most effective combination of P. lilacinus was with neem cake.