This study investigates the potential of functionally-enhanced periphyton enriched with phosphate-solubilizing bacteria (PSB) as a novel biofertilizer to improve the growth parameters and yield attributes of plants in rice paddy fields. The research represents the first farm-scale investigation of the PSB-enhanced periphyton. The study aimed to assess the ability of the periphytic biomass to act as a reservoir for phosphorus (P), regulating its bioavailability to rice plants and decreasing the demand for chemical inputs at the field-scale. In order to achieve this, superior P-solubilizing bacteria isolates were utilized to prepare the functionally-enhanced periphyton. The research revealed that PSB-enhanced periphyton acts as a controlled-release biofertilizer, minimizing P losses during low-demand growth stages and enhancing P supply during high-demand growth phases. The findings demonstrated that P concentration declined significantly (by 75.2%) in the paddies' overlying water under periphyton application. Conversely, periphyton increased soil P availability (24.2%) and plant P content (16.0%). The research shines a light in the possibility of utilizing the functionally-enhanced periphyton as an effective inoculant for sustainable rice production, with implications for reducing the heavy reliance on chemical inputs in agricultural systems. This research serves as a bridge between laboratory and greenhouse experiments and real farm conditions, offering practical applications for sustainable management of agrifood systems. The investigation's results enable a deeper understanding of periphyton and its role in sustainable rice production, providing a reliable source for researchers, producers, and policymakers involved in sustainable production systems.