Studies were conducted to find efficient Indole acetic acid producing strains and assessing the effectiveness of combined dose of azolla (dried) and IAA producers on plant growth. Out of ten isolates, only two isolates, viz, F1 and G2 were found to be potent IAA producers and were used for further experiments. It was found that the isolate F1 and G2 produced maximum amount of IAA at 0.9% tryptophan and incubation for 72 h at room temperature. The optimum pH for IAA production for isolates F1 and G2 was found to be at pH 9. The isolates were also assessed for the presence of other plant growth promoting activity, such as hydrogen cyanide production, oxalate solubilization, phosphate solubilization and zinc solubilization. Effect of IAA producers on seed germination was done by pot experiments carried out into sets. Isolates F1 and G2 were found efficient for plant growth promotion in desired aspects. Effect of combined dose of azolla and IAA producers on seed germination was assessed by pot experiments. For this, dried powder of azolla was added during sowing of culture treated seeds. No further culture supply was given to the seeds. Azolla has high protein content. Slow protein releasing property of azolla can be useful to provide constant supply of the precursor (tryptophan) for IAA synthesis by isolate. In addition to the plant exudates, azolla may also give constant supply of tryptophan. From all the assessed samples, the isolates FI and G2 showed efficient growth of plants in all aspects. G2 was found to be more potent than F1. So as to assess the compatibility of isolate in natural conditions, field studies were done. Four plots designed having individual size 9 × 5 m, were used. It was found that plots 3 (only culture) and 4 (culture with azolla) showed better plant growth as compared to others. On the basis of IAA producing ability of G2, pot experiments and field studies, it was concluded that isolate G2 can be used alone or in conjunction with azolla as a biofertilizer to get better plant growth.