The aim of the present in-vitro studies was to identify Trichoderma strains from Hong Kong with highly antagonistic potential against the basidiomycete Phellinus noxius. Dual culture and interaction tests using samples of balsa wood (Ochroma lagopusi) as well as studies on fungal growth at different temperatures and water activities were conducted. The impact of Trichoderma strains on wood colonisation and decomposition by three P. noxius isolates were quantitatively analysed by measuring dry weight loss and rate of eradication of the pathogen from the test wood. Most Trichoderma strains revealed antagonistic potential against P. noxius. In the wood blocks incubated with P. noxius and then treated with Trichoderma T-TMS1 for 24 weeks, 100% eradication of three P. noxius isolates was recorded. The results indicated that application of Trichoderma strains might be a promising and environmentally benign method of eradicating P. noxius from wood debris in soils.