Gluconacetobacter diazotrophicus has a long standing history of bacterial plant ferret relationship as a symbiotic entophyte capable of fixing atmospheric nitrogen.In the present study, 20 isolates of Gluconacetobacter diazotrophicus were isolated from the root, bud, stem and leaves of sugarcane. The effect of co-inoculation of Gluconacetobacter diazotrophicus Gad B2 Glomus fasciculatum on growth nutrient uptake and yield of sugar cane was studied in pot culture experiment at different NP levels. The result of the pot culture experiment revealed that the co-inoculation of Gluconacetobacter diazotrophicus Gad B2 in combination with Arbuscular Mycorrhizal fungus Glomus fasciculatum 50, 75 and 100 per cent NP levels increased the germination percentage, vigour index, plant biomass, number of tillers, internodes, number of leaves, cane girth, leaf nitrogen per cent, soil nitrogen per cent, Arbuscular Mycorrhizal colonization, Arbuscular Mycorrhizal spore count and yield parameters like number of millable spore canes and weight of cane were determined. Thus the scope saving 25% N and 25% P when the biofertilizer treatment as adopted as one of the package in the sugarcane cultivation