Ian Austin said there were people in the party who still insisted that racist, homophobic and anti-Semitic abuse did not take place.
His comments came as an inquiry by Labour's National Executive Committee (NEC) supported Ms Eagle's claims that her office in Wallasey was vandalised and that the atmosphere of her constituency Labour party (CLP) had become 'toxic and divided in the extreme'.
Dudley North MP Mr Austin, said: "Politics can be passionate and people can hold strong views, but there must be no tolerance of homophobic, racist or anti-Semitic abuse.
"The Labour Party has got to deal with this issue head on. There is no point in people deluding themselves that they are so virtuous and righteous and denying that these things are not taking place.
"There is no place for this type of behaviour in the party and it must be stamped out."
Wolverhampton North East MP Emma Reynolds said anyone found guilty of abusive behaviour 'should be expelled from the Labour Party'.
An inquiry was launched by the NEC after Ms Eagle said a brick had been thrown through her constituency office window during her leadership campaign.
Her constituency staff complained about abusive calls and threats after she resigned from the shadow cabinet and announced she was going to challenge Mr Corbyn.
Ms Eagle later withdrew her candidacy in favour of Owen Smith, who was beaten by Mr Corbyn in the contest. A meeting of an NEC sub-committee this week, which was attended by Mr Corbyn, considered the confidential report and upheld Ms Eagle's complaint of abuse and intimidation by Labour activists.
According to reports, a leaked copy of the document said it was highly likely that the brick thrown through the window was related to her leadership challenge.
Labour has suspended the Wallasey Labour Party indefinitely.