Biofertilizers are the material which contains living microorganisms. When applied to plant surfaces, they promote plant growth by increasing the supply of primary nutrients to the host plants. Tremendous population increase put a pressure and high demand in agricultural productivity. This results in use of chemical fertilizers, pesticides as well as insecticides at large scale. Though it help in production of crops at a little higher rate but has adversely affected soil fertility. With the use of these chemical fertilizers soil is continuously losing its fertility and essential minerals. The best remedy to overcome this problem is to enhance production and use of biofertilizers. Biofertilizers result is slow in comparison to chemical fertilizers but is soothing and long lasting for soil and host plant. It is also cost effective when compared to chemical fertilizers. Microorganisms like bacteria, fungi and blue green algae are used as biofertilizers. They are effective in enhancing plant growth by several activities such as decomposition of organic materials, nitrogen fixation, suppression of plant diseases, increased nutrient availability, synthesis of antibiotics, phytostimulation, production of phytohormones etc. Biofertilizers include Plant Growth Promoting Rhizobacteria (PGPR), Arbuscular Mycorrhizal Fungi (AMF) and also Rhizobial Biofertilizers. The review provides comprehensive knowledge about the use of microbial diversity as Biofertilizers and its applications.