<p>Sugarcane ecosystem predominant in some biotic stresses particularly diseases like red rot, wilt, pokkah boeng, whip smut, sett rot, seedling rot, ratoon stunting, and gummosis which play significant role in reduction in yield and quality of juice. To reduce yield losses, an eco-friendly approach like biological control using natural antagonists like fungi and bacteria is a part of disease management strategies. Potential fungal and bacterial antagonists have been identified and tested against major fungal, bacterial, viral and nematode diseases both in different laboratories and field conditions. Species of <i>Trichoderma</i>, <i>Pseudomonas</i> and <i>Bacillus</i> are some common examples of bioagents that are being used to deal with diseases in sugarcane crop. Key strategies followed by fungal antagonists to inhibit pathogenic fungi are competition and mycoparasitism while, beneficial bacteria such as <i>Pseudomonas fluorescens</i> and <i>Bacillus</i> species, suppress pathogens by antibiotic production and induced systemic resistance. Natural predators and parasites of insect vectors transmitting virus and phytoplasma also play an important role in controlling vector population. This eco-friendly approach aims to minimize the pressure to rely on chemical pesticides with less risk of pesticide resistance development. Biocontrol promotes sustainable agriculture and environmental health. Specificity towards a particular pathogen and dependence on environmental conditions are some of the major challenges on use of the bioagents. Integration with other disease management practices is essential to improve efficacy of bioagents. This review highlights about the currently used potential fungal and bacterial bioagents for the management of sugarcane diseases and major challenges that need to be tackle for the effective management of sugarcane diseases.</p>