A pot culture experiment was carried out at Department of Agricultural Microbiology, University of Agricultural Sciences, Dharwad during 2006 to study the effect of Methylotrophs on growth and yield of soybean. All the Methylotroph isolates were tested for a selective biochemical tests. All the isolates showed positive results for oxidase test, urease test, and indole production. None of the isolates showed positive results for casein hydrolysis, H2S production, MR and VP test, nitrate reduction test. The experiment was laid out in Randomized complete block design with five replications. The treatments comprised of(T1-ML2, T2-ML55, T3-ML66, T4-Reference strain LE1, T5-Rhizobium strain SB120, T6-ML2+SB120, T7-ML55+SB120, T8-ML66+SB120, T9-Reference strain+SB120 and control). The results indicated that significantly higher growth parameters viz., plant height, number of leaves, shoot dry weight, root dry weight and higher Methylobacterium population was recorded in T9 and T7 treatments. Similarly higher number of nodules and nodule dry weight was recorded in T7. Similar trend was observed in yield components viz., number of pods per plant, grain yield was recorded in treatment T7 followed by T9 compared to other treatments and Uninoculated control.