Rubberwood is prone to attack by saptain mold, wood decaying fungi and wood borers. Rubberwood preservation treatment is usually done through conventional chemical methods, which could cause environment and public health concern. A promising biocontrol agent from natural resources with a broader spectrum of disease control and high yield is needed. In this study, the growth of Malaysian white-rot fungus, Earliella scabrosa (E. scabrosa) isolated from the Malaysian forest was carried out in a shake flask culture. The antifungal activities of E. scabrosa extract against selected wood-degrading fungi of rubberwood were elucidated via broth dilution method using a 96-well microtitre plate for minimum inhibitory concentration assay. The composition of the major compounds extracted from the mycelium was determined by gas chromatography mass spectrometer (GC-MS). It was observed that the maximum biomass production was obtained when E. scabrosa was incubated in media with initial pH 6.5 or when incubation temperature was at 30°C or when agitation speed was 150 rpm. This fungal strain also showed higher antifungal activity against seven wooddegrading fungi of rubberwood with Minimum Inhibitory Concentration (MIC) values ranging between 0.61 and 5.00 μg μl–1. The GC-MS spectrum indicated that this fungus produced several compounds, such as 2(3H)-furanone, 5-heptyldihydro-, 4H-pyran-4-one, 2,3-dihydro-3,5-dihydroxy-6-methyl- and triacetin. This shows that E. scabrosa, which belongs to the group basidiomycete, is capable of producing active ingredients to inhibit the growth of fungi on the rubberwood.