A study is being conducted in Mississippi to determine the diversity of microfungi associated with red imported fire ants (RIFA) and their mounds. Active mounds containing RIFA, mound soils and plant debris were collected from Hinds, Madison, and Leake Counties along Natchez Trace Parkway Mississippi in March, July, and November 2004. The three counties were selected because they have been confirmed to be occupied by RIFA. Five mounds were collected per time per sampling location. Once transported to the laboratory, samples were processed and isolated according to standard microbiological procedures. A total of 1445 different fungal isolates were obtained. Isolated fungi were initially grouped based on morphological features, and identification is being confirmed using molecular technique (~50% complete). As expected, from three sampling locations, most fungi were isolated from plant debris, followed by soil mounds, and ants (externally and internally). Majority of those were saprophytic fungi which are commonly found in soil and/or residents of the phyllosphere such as Fusarium, Aspergillus, Mortierella alpina, and Hypocreales. Very few fungi isolated from internal body region of RIFA indicating that they may be transients within the internal body regions of RIFA. Metarhizium anisopliae and Paecilomyces lilacinus, two species known as entomopathogenic fungi in other insects, were recovered from the three locations. These two fungi along with others that showed potential during laboratory evaluation are being evaluated under field-caged condition to identify their biological control potential.