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Gallic acid and methyl ester of gallic acid has been identified as antifungal compounds against the mycelial growth of Pythium aphanidermatum from acetone-water extracts of Acacia nilotica leaves. The growth of fungus was completely ceased by gallic acid and its methyl ester at 1000 ppm and 750 ppm, respectively. Antifungal properties of both compounds were found to be higher in combination than alone. The minimum inhibitory concentration for both compounds was 1000 ppm. No phytotoxic effect of the compounds was observed on watermelon seed germination. The growth of roots and shoots of watermelon seedlings was promoted by gallic acid but decreased with methyl ester of gallic acid. Nitrate reductase activity of the fungus was significantly inhibited by both compounds.