Tree legume (Acacia polyacantha) was tested for their capacity to nodulate withrnindigenous root nodule bacteria in soil collected from Ghibe Valley. The five isolatesrnwere characterized by some biochemical and physiological tests. Based on specificrngrowth rate and acid production, the isolates were assigned tentatively to Bradyrhizobiumrnand Rhizobium. The infective propagules of Arbuscular mycorrhizal fungi (AMF)rnoccurring on the study site was determined by spore count and most probable numberrn(MPN). Average spore count of soil found out 58per 100g and a hundred gram of fieldrnsoil contains 189.42 infective propagules. The dominant spore count encountered wasrnGlomus like AMF (59.1%) and 40.9% of the rest spores were Gigaspora-Scutelosporarntype AMF. Response to inoculation with Bradyrhizobium, AMF, dual inoculation andrnfertilizer treatments of Acacia polyacantha studied in glasshouse condition submitted to 7rntreatments. After 70 days, the plants were harvested and nodule number and dry mass,rnshoot height, dry weight, nitrogen and phosphorus content were determined. Resultsrnshowed that A. polyacantha inoculated with both organisms recorded the highest nodulernnumber, shoot dry weight, nitrogen and phosphorus content (p