Bacillus firmus, commercial WP formulation (BioNem) was evaluated against root-knot nematode, Meloidogne incognita on tomato plants under field conditions of Dire Dawa and Haramaya University (Ethiopia). Studies were conducted with the objectives to find out the effect of BioNem on nematode infestation and plant growth/yield of tomato and to compare two methods of application of BioNem for the control of root-knot under field conditions. Soil application of BioNem at transplanting in the field @ 200 and 400 kg/ha provided control of root-knot nematode and increased crop growth and yield over untreated control significantly. Dip treatment of tomato nursery in 2% and 4% BioNem suspension for 2 hrs just before transplanting also reduced root-knot nematode infestation and improved crop growth and yield, though it was less effective than soil application of BioNem. In general, our result indicated, BioNem seems to be effective for the management of root-knot nematode and has the potential to be a vital component of integrated management for root-knot nematode.