Feasibility of production of antagonistic Trichoderma sp. conidial spores using wastewater sludge as a raw material employing different suspended solids concentration (10-50 g/l) was investigated in shake flasks. Maximum conidial spore count obtained for raw sludge was 1.98 x 10(4) CFU/ml, which was enhanced by sludge pre-treatments (alkaline and thermal alkaline). Conidial spore count ranging from 1.3 x 10(6) to 2.8 x 10(7) CFU/ml was observed for alkaline and thermal alkaline treated sludges. Optimal suspended solids concentration was 30 g/l (10(7) CFU/ml) whereas, lower (<20 g/l) and higher (>30 g/l) solids concentration were less efficient. Thermal alkaline pre-treated sludge showed diauxic growth due to multiplicity of sludge biodegradability. A simple, modified CFU filtration technique was also developed for fungal spore assessment in sludge. Bioassay of fermented sludge against spruce budworm larvae showed entomotoxicity (15036 SBU/microl), on par with Bacillus thuringiensis biopesticides. This study successfully demonstrated potential of wastewater sludge as a raw material for production of value added product, aiding in sludge management and proliferation of eco-friendly and economical biocontrol agents.