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Plant growth promoting rhizobacter (PGPR) are adapted to adverse conditions and protect plants from the deleterious effects of some environmental stresses. The aim of the present study, the drought tolerant plants growth promoting bacteria (PGRB) were isolate and characterized from chilli crop (CapsicumannumL). From the rhizosphere soil twelve bacteria were isolated and characterized based on their biochemical and sugar fermentation. The drought stress tolarent stains were screened by production of exo polysaccharides and the plant growth promoting activities like production of IAA and PO4 solubilization were screened. Therefore the present study report that PGRB showed good stress tolerance under drought condition in chilli crop.