tPaecilomyces lilacinus is an egg-parasitic fungus which is effective against plant-parasitic nematodes andit has been successfully commercialized for the control of many plant-parasitic nematodes. However, dur-ing the large-scale industrial fermentation process of the filamentous fungus, the dissolved oxygen supplyis a limiting factor, which influences yield, product quality and production cost. To solve this problem, weintended to heterologously express VHb in P. lilacinus ACSS. After optimizing the vgb gene, we fused it witha selection marker gene nptII, a promoter PgpdA and a terminator TtrpC. The complete expression cas-sette PgpdA-nptII-vgb-TtrpC was transferred into P. lilacinus ACSS by Agrobacterium tumefaciens-mediatedtransformation. Consequently, we successfully screened an applicable fungus strain PNVT8 which effi-ciently expressed VHb. The submerged fermentation experiments demonstrated that the expression ofVHb not only increased the production traits of P. lilacinus such as biomass and spore production, butalso improved the beneficial product quality and application value, due to the secretion of more proteaseand chitinase. It can be speculated that the recombinant strain harboring vgb gene will have a growthadvantage over the original strain under anaerobic conditions in soil and therefore will possess higherbiocontrol efficiency against plant-parasitic nematodes.