Sandy soils are widespread globally and are increasingly utilized to meet the demands of a growing population and urbanization for food, fiber, energy, and other essential services. However, their poor water and nutrient retention makes crop cultivation challenging. This study evaluated the effects of integrating compost and plant growth-promoting rhizobacteria (PGPR; Azospirillum brasilense SWERI 111 and Azotobacter chroococcum OR512393) on wheat (Triticum aestivum L. var. Misr 1) grown in sandy soil under varying levels of recommended NPK (50%, 75%, and 100%) fertilization. Conducted over two growing seasons, the experiment aimed to assess soil health, nutrient uptake, microbial activity, and plant productivity in response to compost and PGPR treatments. The results demonstrated that combining compost and PGPR significantly improved soil chemical properties, such as reducing soil pH, electrical conductivity (ECe), and sodium adsorption ratio (SAR), while enhancing soil organic matter (SOM). Additionally, compost and PGPR improved soil nutrient content (N, P, K) and boosted the total bacterial and fungal counts. The combined treatment also increased urease and phosphatase enzyme activities, contributing to enhanced nutrient availability. Notably, plant productivity was enhanced with compost and PGPR, reflected by increased chlorophyll and reduced proline content, along with improved grain and straw yields. Overall, the results underscore the potential of compost and PGPR as effective, sustainable soil amendments to support wheat growth under varying NPK levels.