Potential biological control agents such as entomo-pathogens were isolated and their bio efficacy was tested. The present biological control strategy developed by using Metarhizium ansiopliae which is effective and non-chemical, pesticide free, eco-friendly, conserves bio- diversity and no phytotoxicity was recorded. This is a naturally occurring organism that is prepared using chickpea, plant oil and adjuvants. Application of M.anisopliae @ 1x107 spores/ml resulted in significantly higher yield of capsicum (3.1kg/plant) and low incidence of thrips (3.6/plant) copared to the control (0.825kg/plant and 11.42 thrips/plant). This oil based formulation has more than a year of shelf life compared to the commercial formulations.