Cyanobacteria are one of important groups of prokaryotes due to their effects on growth and development of plants and its role in biological control of phytopathogenic fungi such as : Fusarium oxysporum and Rhizoctonia solani on flax by producing various biologically active substances . In the present study , fourteen cyanobacterial strains were isolated from rice rhizosphere in kafr El–sheikh (k) ( North Delta Region ) and El- Dakahliya (D) ( East Delta Region ) . Only five cyanobacterial strains showed antagonistic effects against the both pathogenic fungi and were indentified as Nostoc muscorum k , Anabaena oryzae D , Anabaena oryzae k , Nostoc pruniforme D and Oscillatoria brevis D. The strains were analysed for phosphate solubilization , production of IAA , ammonia , HCN , production of some enzymes , and effect of their filterates on seed germination of flax seeds . Flax seeds treated with cyanobacterial filtrates germinated faster and produced higher seedlings compared with the nontreated ones .