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Eighty two soil samples were screened for the prevalence of Chrysosporium and dermatophytes. Out of the 75 positive samples 2 were M. gypseum and 73 were Chrysosporium spp.None of the soil samples yielded both Chrysosporium spp. and M. gypseum. The co- inoculation of Chrysosporium spp. with different species of dermatophytes (T. rubrum. T. Mentagrophytes. E. floccosum and M. gypseum) in sterilized soil revealed that none of the dermatophytes except M. gypseum could be recovered after the 15th day of co- inoculation. Whereas, these organisms when inoculated alone in sterilized soil, could be recovered even upto 25 days. In the light of the above finding, we suggest that Chrysosporium spp. might pose a definite challenge to dermatophytes in their saprophytic existence in soil.