Microbial diversity plays an important role in nutrient dynamics for rice plant growth development and yield. Soilborne pathogenic fungi cause heavy crop losses all over the world. AFM bacteria in association with plant roots regulate the plant growth. The importance of the AFM efficiency of bacterial isolates in the soil rhizosphere was studied. In this studies 10 isolates were selected, among this isolates, Bo Strain can exhibited high level of antifungal activity. The strains suppressed the growth of phytopathogenic fungi through the production antibiotics. The Strain B6 can exhibit low level of antifungal activity. The isolates produced indole acetic acid in the presence of tryptophan amended environment. The isolates Bo (10mm) and B6 (8mm) produced a phosphate solubilization zone. The soil type and pH could influence the genetic diversity and phosphate solubilizing ability. Phosphate solubilizing efficiency of the isolates was achieved mainly by the production of organic acid. The effect of AFM strains (B0, B1, B2 and B6) on rice plant ADT-45, ADT-43, ADT – 39, Co-43 and BPT-5204 has been studied under invitro condition. The results indicated that inoculation of rice seeds with AFM strains improved the plant growth. In this investigation nearly all the selected isolates were found more effective and increased the root length and shoot growth as compared to the control.