The higher mortality rate of the older gypsy moth larval instars was reported in the forest complexes of Belgrade and Valjevo region, in the culmination phase of the new outbreak of the gypsy moth in Serbia. By field and laboratory studies of the causes of their death, the presence of conidia and resting spores of the entomopathogenic fungus Entomophaga maimaiga was reported in the dead caterpillars. This has been the first report of occurrence of this species in Serbia, that is, Serbia is the third European country in which this fungus has been reported. It showed to be a powerful reducer of the population size of the gypsy moth, and in both regions it caused the collapse of the outbreak in 2011.Keywords: Entomophaga maimaiga, Lymantria dispar, gypsy moth, biological control, epizootic