Lasiodiplodia theobromae (Pat.) Griffon and Maubl. was found associated with seeds of several tropical tree species, which eventually proved decline in regeneration potential in many forest tree species. Germination studies on seeds of Myristica malabarica for artificial regeneration recorded incidence of the ascomycetic fungal pathogen in stored Myristica seeds. Seeds were collected from the natural stands during the months of February - March for four consecutive years of study 2018 to 2021, from Mullaringad forest range in South India with coordinates of 10°1’4” N and 76°47’10” E. Seeds stored in containers detected fungal infection after one month of storage. Mean incidence percentage of 28.75% was recorded in stored seeds collected during 2018. Infection appeared as fluffy, cottony, grayish white patches. Germination characteristics of fresh and stored seeds were evaluated by ANOVA. Fresh seeds recorded a mean germination percentage of 31% and that of infected seed lot was 4.5%. Seed borne fungi Lasiodiploida theobromae is a threat in plantation practices of Myristica malabarica. The disease incidence is random in seed lots but has a significant impact in reducing germination. Since M. malabarica is listed as vulnerable in IUCN, its propagation requires high consideration.