Using Effective Microorganisms (EM) is an ecofriendly approach to reduce the application of synthetic fertilizers in agriculture. The study was conducted to evaluate the efficacy of homemade EM along with compost on growth, yield parameters of chilli (Capsicum annuum) at Hunumulla agricultural farm, Gampaha District. Field experiment was carried out in a Randomized Complete Block Design with three treatments and each treatment had three replicates. The treatments were control (T1), compost (T2) and EM + compost (T3). EM solution was prepared by keeping cooked rice balls in a cool dark place for the enrichment of microbial growth and filled with sugarcane molasses for the fermentation. ANOVA and Duncan's multiple range analysis were used to analyze the data using SPSS 22.The results showed that EM + compost treated crops showed significantly (P<0.05) highest plant height (29.76cm), number of leaves per plant (176.40), number of branches per plant (44.67), number of flowers per plant (15.47) and number of chilli pods per plant (10.60), but there were no significant differences observed between the EM + compost and compost (P>0.05) in pod length, pod width and the weight of total chilli pods per crop. The present study concluded that growth and yield of the chilli crops were increased by the application of EM with compost compared to the application of compost only. EM with compost is a potential biofertilizer for encouraging organic farming.