Aim and Background: The objective of this research was to evaluate the effects of Bio fertilizer (Azosprillium spp bacteria) and Salicylic acid on growth and development characteristics of Ocimum basilicum L. plant under water stress.

Materials and Methods: The experimental design was factorial arranged in a completely randomized block design with three replications. Treatment were combination of 3 levels of water stress (100% FC as a control, 60% FC and 30% FC) and Bio fertilizer (inoculated and non-inoculated) and Salicylic acid (0 as control and 0.75 mM).

Results: Data variance analysis showed that morphological characteristics was significantly (p<0.05) affected by drought levels, Salicylic acid, Bio fertilizer and their interaction. The effects of various treatments on shoot and flower number, dry and fresh weight of root and shoot, Relative water content (RWC) and electron leakage was significant at 1%.

Conclusion: Application of salicylic acid and Azosprillium inoculation increased growth and development of Basil under water stress.