Seventeen fungal species were isolated from peanut roots and stems as well as external surfaces of pods. The high frequency percentages were recorded with Rhizocotoni solani, Aspergillus niger, A. flavus, Fusarium oxysporum, Alternaria alternata and Macrophomina phaseolina. They recorded values ranged between 7.7 to 14.3% and 6.0 to 11.7% from roots and stems as well as pods, respectively. The in vitro linear growths of M. phasoeolina, R. solani and F. oxysporum on PDA amended with 5ml/ L of the Sacharomyces cerevisiae were inhibited by 59.67, 51.89 and 86.67%, respectively. Under greenhouse condition, the application of S. cerevisiae at concentration of 5 ml/L was the most effective treatment in decreasing damping–off incidence caused by M. phaseolina, R. solani and F. oxysprum to 25, 15 and 20%, respectively compared with 50, 65 and 45% of their control treatments. While, decrease in means of damping–off incidence (%) with the same concentration (5 ml/L) reached to 5.45% and 3.75% under field conditions in case of soaking seed and soil application, respectively and 16.6% in the control. Concentration of S. cerevisiae was positively correlated with decreasing in damping–off and pod rot disease incidence (%); and increasing pod yield and total chlorophyll (a and b) content in peanut leaves.