Different strains of plant growth promoting rhizobacteria (PGPR) were used to control damping-off, root rot and wilt dead plants of lupine under greenhouse and field conditions. Most of the tested strains produced indole acetic acid (IAA), siderophores and hydrogen cyanide in vitro. Culture filtrate of bacterial strains significantly reduced mycelial dry weight of Rhizoctonia solani and Fusarium oxysporum under laboratory conditions. Application of bacterial strains as seed treatment resulted in significant reduction in disease incidence under greenhouse and field conditions compared with untreated control. Pseudomonas fluorescence, Bacillus subtilis and Bacillus polymyxa were the superior. Further more, application of PGBR as seed treatment increased root colonization of the plant compared with untreated control in both infested and non-infested soil. A pronounced increase in the number of nodules, shoot and root dry weight as well as seed yield of lupine as a result of seed treatment with bacterial strains.