Phosphorus is crucial for plant growth and productivity, and its scarcity in soil negatively affects crop yields. A major portion of chemical phosphate fertilizer precipitates with soil minerals, making it unavailable for plant growth. Phosphate-solubilizing microorganisms play a pivotal role in enhancing phosphorus availability, facilitating better nutrient absorption, and ultimately boosting plant growth. This article presents a brief overview of the phosphorus status in Indian soil, discusses the various forms of phosphorus and its dynamics across different soil types, and analyses the factors involved, highlighting the importance of phosphorus management for sustainable agriculture. Physiological and molecular mechanisms of microbial phosphate solubilization provide deep insights into exploring PSMs for managing phosphorous in different soil types. It also provides a path for the necessity to explore the multifarious plant growth-promoting traits of PSMs underscoring its applicability for sustainable agricultural practices with viable economy. The mechanism of solubilization of phosphorus has been discussed to understand the role of microorganisms in different soils. The study highlights the role of significant microorganisms in developing tailored consortia of PSMs and other plant growth-promoting rhizobacteria (PGPR) based on the chemical composition of the soil, along with an integrated nutrient approach incorporating PSMs. This review offers valuable insights into harnessing PSMs and their practical applications, facilitating their broader adoption in agricultural systems to maintain soil health.