The genus of Trichoderma is widely applied for the biocontrol of phytopathogenic fungi in agriculture sector. Moreover, Trichoderma species are also excessively exploited in different industrial purposes due to their production of important lytic enzymes such as chitinases, glucanases and proteases. Several genetic improvement trials are carried out for maximizing the role of Trichoderma as biological control agents via mutation, protoplast fusion, and genetic transformation. This review highlights the mode of action of Trichoderma against pathogenic fungi, potential applications in different fields of life, and the recent genetic improvement trials for increasing the antagonistic abilities of this fungus as biological control agent.