This study characterized the soil bacteria producing non-volatile fungistatic substances. Among the 2,100 colonies of soil bacteria randomly isolated from seven agricultural soil samples, 518 isolates (24.67% of total) showed fungistatic activity toward nematophagous fungi Paecilomyces lilacinus and Trichoderma viride by producing non-volatile substances. A phylogenetic analysis based on amplified ribosomal DNA restriction analysis (ARDRA) and 16S rDNA sequence placed the 518 bacteria in three groups of the domain Bacteria: Actinomycetales, Bacillales, and Gammaproteobacteria. Three genera, Arthrobacter, Bacillus, and Pseudomonas, were the most frequently encountered groups.