Verticillium psalliotae Treschow was found parasitizing urediniosori of Hemileia vastatrix Berk and Br., the pathogen of coffee rust in several coffee plantings in Selangor, Malaysia. Mycoparasitism was studied by scanning electron microscopy (SEM) and Nomarski interference light microscopy. V. psalliotae grew vigorously between the warts on the surfaces of the urediniospores forming many conidiophores and conidia. The hyphae of the mycoparasite also grew inside living urediniospores. Infected spores eventually lost their cytoplasm except for oil bodies and were rendered non-viable. No penetration of Hemileia germ tubes or mycelium was observed. This is the first record of mycoparasitism of H. vastatrix by V. psalliotae in Malaysia.