Bakanae is one of the important diseases of rice in Bangladesh that causes substantial yield loss every year. We collected thirty isolates of Fusarium spp. from bakanae-infected rice plants from different agroecological zones of Bangladesh and investigated the variations in cultural and morphological characteristics and pathogenicity. Diversity was found in cultural characteristics, viz., colony features, phialide, chlamydospore formation, shape, and size of macro- and microconidia. Three variants of Fusarium species such as F. moniliforme, F. fujikuroi, and F. proliferatum were identified on PDA media based on their cultural and morphological characteristics. Isolate FM10 (F. moniliforme) exhibited the highest disease aggressiveness in developing elongated plants (26.50 cm), the highest number of chlorotic leaves (5.75), and a lower germination percentage. We evaluated different bioagents against the virulent isolate of F. moniliforme to develop a rice bakanae disease management approach. Four bioagents, viz., Trichoderma spp., Bacillus subtilis, Pseudomonas fluorescens, and Achromobacter spp., were evaluated for growth suppression of F. moniliforme. Among the bioagents, Achromobacter spp. and B. subtilis (BS21) showed 73.54% and 71.61% growth suppression, respectively. The investigation revealed that the application of Achromobacter spp. and B. subtilis (BS21) would be a potential candidate for effective and eco-friendly management of the bakanae disease of rice.