Mealybug was considered to be a minor pest of cotton but it emerged as a major pest in 2006-2007 in North and Central zones. Extensive field surveys conducted in cotton fields during 2007-09 in Haryana, Rajasthan and Punjab in the North zone and Madhya Pradesh, Maharashtra and Gujarat in the Central zone indicated that Phenacoccus solenopsis was the only major species of mealybug recorded on cotton in North as well as Central zones except one location in Gujarat where Fenrrisia virgata Cockerrel was also recorded. Infestation of mealybug at most of the places in North and Central zones ranged from mild (10-20%) to high (40-60%) during 2007 and 2008 but reduced to traces in 2009. Extensive field survey indicated that Aenasius bambawalei Hayat (Chalcidodea: Encyrtidae), an indigenous parasitoid, played a key role in reducing the insect pestinfestation. The parasitoid was first recorded in Delhi in July 2008 and by 2009 it was found in most of the cotton growing districts of North and Central zones. Its natural parasitization on P solenopsis could reach more than 90% at many locations. This is the most successful example of biological control of mealybug. Along with this parasitoid, another parasitoid, Promuscidea unfasciativentris Girault (Chalcidodea: Aphelinidae), was also recorded at most of the locations in smaller proportions.