Trichoderma harzianum biotypes Th1, Th2, and Th3 produced volatile metabolites in vitro which had similar fungistatic effects on the growth of Agaricus bisporus. Metabolites present in agar colonized by these strains also inhibited mycelial growth of A. bisporus, although the reduction in growth was less in the presence of metabolites produced by biotype Th2 than that in the presence of metabolites produced by Th1 or Th3. A. bisporus produced metabolites in liquid culture that inhibited the growth of Th1 and Th3 but stimulated the growth of Th2. A compound(s) responsible for the inhibition and stimulation was extracted from A. bisporus culture filtrate and from compost-grown fruit bodies with n-butanol, but the identity of the compound(s) was not determined. We suggest that the stimulation of Th2 by metabolites produced by A. bisporus and the relatively low level of inhibition of A. bisporus by Th2 facilitate colonization of compost by both fungi. However, as compost colonization reaches a maximum, a change in the competitive balance in favor of Th2 results in the inhibition of fruit body production by A. bisporus and the devastating green mold epidemics affecting mushroom production.