Ceratobasidium includes orchid mycorrhizal symbionts, plant pathogens and biocontrol agents of soilborne plant pathogens. It is not known to what extent members of the first guild also can participate in the others. Ceratobasidium spp. were isolated from roots of Colombian orchids and identified by phylogeny based on nrITS sequences. Phylogenetic grouping of Ceratobasidium spp. isolates corresponded to orchid host substrate (epiphytic vs. terrestrial). Isolates were tested for virulence on rice and for biocontrol of Rhizoctonia solani, causal agent of sheath blight of rice. All Ceratobasidium spp. isolates caused some signs of sheath blight but significantly less than a pathogenic R. solani used as a positive control. When Ceratobasidium spp. isolates were inoculated on rice seedlings 3 d before R. solani, they significantly reduced disease expression compared to controls inoculated with R. solani alone. The use of Ceratobasidium spp. from orchids for biological control is novel, and biodiverse countries such as Colombia are promising places to look for new biocontrol agents.