A field test using Paecilomyces lilacinus to control reniform nematodes in cotton was conducted during 2006. The specific fungal isolate, P. lilacinus strain 251, has been named NemOut for use in cotton. NemOut is based on an EPA registered bio-rational fungal nematicide produced by a German company (ProPhyta GmbH); it is presently labeled for use on a variety of vegetable crops and for turf use. ProPhyta, through an American company (Plato Industries, Ltd.), supplied NemOut and technical support. Replicated tests were carried out at the Delta Research and Extension Center. Application was as a spray in-furrow at planting. NemOut was applied at 2, 4 and 8 lbs per acre and these treatments were compared to an untreated check and two conventional treatments. The conventional treatments were Temik® at 5 lbs per acre and AVICTA® treated seed applied as per label. Plots were sampled for nematodes prior to planting and at monthly intervals after planting. Standard plant indices were obtained bi-weekly in all plots. Plots were sprayed weekly to eliminate insect effects. Yields were obtained with a two row research picker equipped with a yield monitor. Boll and square counts in the NemOut plots were generally more than the check. Boll and square counts in NemOut plots were equal to or higher than the counts in the two conventional treatments. Open boll counts one week prior to picking were highest in the 8 lb NemOut plots. Fruiting curves for treatments generally show similar trends.