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Objective: To evaluate the effect of biological control agents (BCA) and two biological formulations (Bio-Terra and Bio-CNPR) against the phytopathogens found in the soil of huacle chili (Capsicum annuum) plantations, in order to obtain healthy seedlings. Design/Methodology/Approach: The following design variables were evaluated: germination (%), disease incidence (%), and survival (%). Stem height and root length were also evaluated. The experimental unit was a tray with n=30 seedlings per each treatments (T0, T1, T2, T3, and T4) and four repetitions. An analysis of variance (ANOVA) was used. Tukey's mean test was applied (using the Minitab Statistical program version 20.0) in units that presented differences (p ≤ 0.05). Results: The phytopathogenic microorganism Fusarium spp. was isolated from the soil of the plots cultivated with huacle chili. The T1 treatment recorded the best inhibitory effect against Fusarium spp.: it had 92.2% germination, 18.3% incidence of Fusarium spp., and 82% surviving seedlings (with an average height of 16 cm and a root length of 7.9 cm). The sterilization of the soil lead to T4 having the best results in germination, incidence, and survival, since Fusarium spp. did not damage huacle chili seedlings. In contrast, T0 did not prosper neither with BCA nor with biological products, since all the seedlings in non-sterile soil died. Study Limitations/Implications: A plastic barrier was placed between the trays with the chili seedlings to avoid cross-contamination between treatments. Findings/Conclusions: T1 (the BCA with nitrogen-fixing bacteria and B. subtilis) recorded the best counteracting results against the damage generated by Fusarium spp. Their antagonism allowed a high percentage of survival of huacle chili seedlings and encouraged plant development through the best root growth and height of the seedlings. [ABSTRACT FROM AUTHOR]