Active role of Macrophomina phaseolina incolum level in dry root rot incidence of groundnut was found. Maximum disease incidence was recorded in unsterilized and sterilized soil at 15-45 days after sowing. Significant increase in disease incidence (48.7 and 98.5 per cent) with increase in inoculum level from 500 to 1000 mg/kg. of unsterilized and sterilized soil was noted. In unsterilized soil, 50 per cent reduction in root incidence due to the activity of bacteria and actinomycetes was observed compared to sterilized soil.