The root nodules of Melilotus alba DESR., a fodder legume, contained high amounts of IAA. A tryptophan pool present in the nodule might serve as a source of IAA production. Presence of IAA oxidase and peroxidase in the nodules indicated the metabolism of IAA, at least in part, in the nodules. The Rhizobium species isolated from the root nodules produced a high amount of IAA (190 pglml) from L-tryptophan supplemented basal medium. IAA production and microbial growth were coincident. The production of IAA by the Rhizobiurn sp. was increased by 315% when the medium was supplemented with lactose (I%), NiClz (10 pglml), cetyl pyridinium chloride (0.5 pglml) and glutamic acid (0.4%). in addition to L-tryptophan (3 mglml). The possible role of the rhizobial production of IAA on the rhizobia-legume symbiosis is discussed.