| Gluconacetobacter diazotrophicus is an endophytic plant growth promoting multi beneficial bacteria known to occur large numbers in sugar rich plants, in the present investigation attempts are made to isolate Gluconacetobacter diazotrophicus from rhizosphere soil and sugarcane parts, in addition a special interest were made for the isolation of Gluconacetobacter diazotrophicus from AM fungal spores. The findings of the present research clearly showed the endophytic occurrence of Gluconacetobacter diazotrophicus in different parts of sugarcane, i.e., Gluconacetobacter diazotrophicus successfully isolated from the extracts of different parts namely root bud and leaves whereas its isolation from rhizosphere soil samples ends with 50% success i.e., two samples fails to show any growth on semisolid LGI medium, very interestingly the extracts of AM fungal spores positively showed growth on semisolid LGI medium. In biochemical character studies the isolates were identified as Gluconacetobacter diazotrophicus and the present finds again proved its endophytic nature in sugarcane as well as in AM fungal spores. The field experiments showed enhanced growth and yield of sugarcane in the treatment having combination of G.diazotrophicus and AM fungi with 50 and 75% graded levels of N, P and K fertilizers |