Global agriculture is significantly threatened by phytonematodes with their direct and indirect effects. The economic challenges will potentially worsen with the climate crisis. Meloidogyne sp. is a notorious plant parasitic nematode due to its polyphagous nature. The chemical nematicides have faced bans due to harmful consequences which led to the research on alternative biological control. The use of bioactive compounds of algal and microbial origin shows promise in effective control measures against soil nematodes by eliciting plant defence. Some of these treatments have also enhanced crop development and soil quality further advocating the shift towards sustainable agriculture. Few studies have been conducted for the production of commercially available effective bio-nematicide formulations. Here, we compile the potential microalgal, macroalgal and bacterial sources with their phytoactive compounds and the latest studies that can be employed for developing eco-friendly resources in future.