Pochonia chlamydosporia, a nematophagous fungus is well-known for its biocontrol potential against plant-parasitic nematodes. This review paper documented colonization patterns of P. chlamydosporia in soil, roots, and the rhizosphere, highlighting the impact of various abiotic factors on its establishment. The biocontrol efficacy of P. chlamydosporia against nematodes, including Meloidogyne spp., Globodera spp., and Heterodera spp., is extensively discussed, covering its mode of action and application methods. Additionally, the review delves into the enzyme secretion, endophytic nature, and secondary metabolites produced by P. chlamydosporia, shedding light on their roles in nematode control and plant growth promotion. P. chlamydosporia application triggers the activation of plant defence mechanisms is also elucidated, emphasizing its potential to induce a robust defence response in host plants. Overall, this comprehensive review consolidates the current knowledge on P. chlamydosporia, offering valuable insights for researchers, practitioners, and policymakers involved in sustainable nematode management strategies.