Agar tree (Aquilaria malaccensis Lam., Family- Thymeleaceae) has drawn unique position due to the production of world’s most expensive essential oil used as perfume. This paper deals with the ease & problems associated with large scale propagation of agar plant and biological control of Heortia vitessoides Moore (Pyralidae: Lepidoptera), a serious insect pest that severely damages its seedlings very often. Germination test performed with 4500 seeds for consecutive 7days showed 93%, 75%, 44.8% 40.6%, 33%, 29.6% and 14.4% germination with 73.61, 53.37%, 49.60%, 31.52%, 23.66%, 31.80% and 35.70% survival respectively. After three months, average height (15.83±1.45cm to 25.83±1.71cm) and average numbers of leaves (8.33±0.88 & 12.5±0.28) of seedlings were measured. Overall, only 42.75% seedlings could survive due to flood followed by grasshopper attack and H. vitessoides infestation during the study period. Biological control approach was adopted to manage this insect-pest using concentrated chilly, garlic and onion extracts @ 1kg/10 liter and fungal spore suspensions (Trichoderma viride, Aspergillus flavus, Metarhizium anisopliae Beauveria bassiana) @ approximately 2.2-2.4x106 spores/ml. Chilly, M. anisopliae and B. bassiana could control insect population above 90%. Onion/garlic were less effective (40-50%), Aspergillus flavus/Trichoderma viride had least (>20%) or no effect at all Chilly may be used as effective, eco-friendly and economic bio-control agent in the field.