Pseudomonas fluorescens is one of the potential Plant Growth Promoting Rhizobacteria (PGPR), which play a major role in the plant growth promotion, induced systemic resistance and biological control of plant pathogens. The bio-efficacy of Pseudomonas fluorescens was evaluated for the management of sheath blight in rice for two consecutive years 2014 and 2015 at ZARS, VC Farm, Mandya. The liquid formulation of P. fluorescens was tested through, basal application of enriched Farmyard manure followed by foliar application seedling dip followed by foliar application and foliar application alone. The pooled data revealed seedling dip of Pseudomonas fluorescens @10ml/l for 30 minutes, followed by foliar application@ 2. 5l/ha at 45 and 55 days after transplanting was significantly effective in reducing the disease severity by recording least PDI of 6.23, highest yield of 66.20 q/ha and highest benefit cost ratio of 2.29:1 as against the PDI of 26.47 and a yield of 33.60q/ha in untreated control. However the fungicide carbendazim 50WP @1g/l recorded PDI of 6.7 and yield of 62.65q/ha with benefit cost ratio 2.14:1. The effective strain of P. fluorescens can be applied through seedling dip followed by two sprays at ten day intervals during the tillering stage for the effective management of sheath blight of rice.