The entomopathogenic nematode Heterorhabditis megidis may undergo several rounds of reproduction within a single host. Infective juveniles (IJs) are formed within each generation during a process referred to as endotokia matricida, which involves the progressive consumption of the parent hermaphrodite or female by the developing IJs prior to emergence from the host cadaver. The present study examines the extent to which within-host population dynamics exhibit density-dependent variation. Particular attention is paid to the effect of infection density on the relative production of IJs and ‘normal’, non-infective offspring within each generation and on the emergence of the IJs from the host. Fecundity was found to be negatively density dependent across generations. However, at high infection density the first generation hermaphrodites invested relatively more in IJs at the expense of producing non-infective offspring. It is suggested that this pattern resulted from an adaptive, phenotypically plastic allocation of reproductive investment between offspring types in response to increased competition. The F1 and F2 IJs were also shown to emerge from the host in relatively discrete pulses.