The effect of nitrogen fixing Azotobacter and phosphate solublising Bacillus megaterium on the growth of two trees; Teak (Tectona grandis) and Indian redwood (Chukrasia tubularis) were tested under nursery condition. The pottery mixture for the Teak and Burmese almond wood seedlings were inoculated with both nirogen Fixing Bacteria and phosphate Solublising Bacteria. The co-inoculation effects were also monitored along with the application of either of single super phosphate or rock phosphate alone or in combination of both. The seedling height and collar diameter of the seedlings were measured after 120 days of trial. Statistically significant positive effect upon co-inoculation was observed on the seedling height and collar diameter for C.tubularis [Critical difference height = 1.11 (P≤ 0.05) and 1.51 (P≤ 0.01); Critical difference collar diameter = 0.18 (P≤ 0.05) and 0.24 (P≤0.01)]. The seedling height of T.grandis was found to be increased significantly upon co-inoculation [Critical difference height = 3.28 (P ≤ 0.05) and 4.67 (P ≤ 0.01)] but the collar diameter showed no significant increase. Current public concerns about the side effects of agrochemicals on human health have renewed interest in bio fertilizers. The present study demonstrated the positive effects of co-inoculation of NFB and PSB on C.tubularis and T.grandis. This finding could be useful for developing a new formulation for biofertilizer under field conditions.