Biofertilizers are natural fertilizers which are microbial inoculants of bacteria, algae, fungi alone, or in combination. They augment the availability of nutrients to the plant and help in maintaining soil fertility. The biofertilizers use living microorganisms that establish a symbiotic relationship with the plants and promote plant growth by increasing the primary nutrient supply to the host plant. The role of biofertilizers in agriculture assumes special significance, particularly in the present context of the increased cost of chemical fertilizers and their hazardous effects on soil health. Blue-green algae (BGA) which act as a biofertilizer are known to contribute up to 80 kg N/ha/season. The application of biofertilizer with beneficial microbes improve the leaf chlorophyll, plant nutrients, and grain protein content in paddy. Hence, the application of biofertilizers helps reduce the use of chemical fertilizers by 50%. Application of biofertilizers (yeast extract, Azolla, BGA, and rhizobium) with 107 kg N/ha in saline soils results in a slight increase in the paddy yield. Higher content (%) in grain and straw were found in PA-6444 with 125% RDF + Biofertilizer treatment. Biofertilizers also reduce the intensity of diseases in paddy. Consortia of biofertilizers-Trichoderma spp. combined with composted straw reduce the intensity of rice diseases i.e. brown spot, narrow brown spot, sheath rice blight, and bacterial leaf blight diseases. Therefore, biofertilizers can be used in combination with inorganic fertilizers to increase the yield of paddy on a sustainable basis.