Biofertilizer as an amendment has growing awareness. Little attention has been paid to bioremediation potential of indigenous heavy-metal-resistant microbes, especially when isolated from long-term polluted soil, as a bioinoculant in biofertilizers. Biofertilizers are a type of versatile nutrient provider and soil conditioner that is cost-competitive and highly efficient with nondisruptive detoxifying capability. Herein, we investigated the effect of biofertilizers containing indigenous cadmium (Cd)-resistant microbial consortia on rice growth and physiological response. The Thai rice cultivar PSL2 (Oryza sativa L.) was grown in Cd-enriched soils amended with 3% biofertilizer. The composition of the biofertilizers’ bacterial community at different taxonomic levels was explored using 16S rRNA gene Illumina MiSeq sequencing. Upon Cd stress, the test biofertilizer had maximum mitigating effects as shown by modulating photosynthetic pigment, MDA and proline content and enzymatic antioxidants, thereby allowing increased shoot and root biomass (46% and 53%, respectively) and reduced grain Cd content, as compared to the control. These phenomena might be attributed to increased soil pH and organic matter, as well as enriched beneficial detoxifiers, i.e., Bacteroidetes, Firmicutes and Proteobacteria, in the biofertilizers. The test biofertilizer was effective in alleviating Cd stress by improving soil biophysicochemical traits to limit Cd bioavailability, along with adjusting physiological traits such as antioxidative defense. This study first demonstrated that incorporating biofertilizer derived from indigenous Cd-resistant microbes could restrict Cd contents and consequently enhance plant growth and tolerance in polluted soil.