The environmental impact of Duddingtonia flagrans, a potential biological control agent for nematode parasites, was tested in a 2-year-plot study using goat faeces. The trial assessed the impact of fungal presence on the disintegration of faeces and on non-target, free-living soil nematode populations. Three groups of goats experimentally infected by Trichostrongylus colubriformis received three different doses of D. flagrans chlamydospores (0 chlamydospores/kg body weight (BW), 0.5 × 106 chlamydospores/kg BW or 5 × 106 chlamydospores/kg BW). One hundred grams of faeces containing T. colubriformis eggs and D. flagrans chlamydospores at three different concentrations were deposited on pasture plots on four different occasions: May 2003, September 2003, June 2004 and September 2004. Faeces were weighed 2, 4, 6, 8, 10, 12, 14, 16, 18 and 20 weeks after deposit and immediately afterwards replaced to their initial positions. In addition, soil samples were taken just below faecal deposits to evaluate the impact of fungal presence on non-target free-living nematodes. Results showed that there was no treatment effect on the pellet degradation rate. Analysis of soil nematode fauna failed to demonstrate any effect of the dose rate of 0.5 × 106 chlamydospores/kg BW, while a reduction of the number of free-living nematodes was seen for the maximal chlamydospore concentration at autumn sets.