A field experiment was conducted during 2012 (kharif season) at College Research Farm of the College of Post Graduate Studies, Central Agricultural University, Barapani, Meghalaya. The experiment was undertaken with split plot design replicated thrice to evaluate the influence of phosphorous (P) levels and PSB strains on agro-physiology, spectral reflectance and yield of rice (Oryza sativa L.) under acid soil. Application of 60 kg P2O5 ha-1 and Pseudomonas sp. inoculation produced significantly maximum value of agro-physiological parameters (plant height, leaf area index, dry matter accumulation, CGR, RGR, NAR, root volume and root biomass, etc.) and yield attributes. Similarly, highest yield was obtained with 60 kg P2O5 ha-1, but PSB strains did not able to produce the yiield upto significance level. Spectral indices i.e. normalized differential vegetation index in the hyper spectral region (NDVIh) and chlorophyll index (CIg) were found significantly higher in 60 kg P2O5 ha-1 at early growth stages, but at final stage it was higher in control, whereas PSB strains did not bring any significant variation in spectral indices at all growth stages of the crop. P and K content in grain and straw were highest with 60 kg P2O5 ha-1 and Pseudomonas sp. Though, N, P and K uptake were significantly affected only by P levels and highest values were achieved with 60 kg P2O5 ha-1. The simple and interaction effect of phosphorous and PSB strains were significant on availability of P and highest value of residual P was observed when 60 kg P2O5 ha-1 associated with Pseudomonas sp. The soil microbial and enzymatic activities were found significantly higher in 60 kg P2O5 ha-1 with Pseudomonas sp. Maximum net return and B:C ratio of Rs. 12467.97 and 1.28 were obtained with 60 kg P2O5 ha-1, respectively. However, economics were not influenced significantly with PSB strains. Finally application of 60 kg P2O5 ha-1 with Pseudomonas sp. recorded the highest productivity and profitability.