The efficiency of the inoculation of three cultures of N-fixing blue-green algaeviz. (i)Aulosira fertilissima (A1), (ii)Nostoc muscorum (A2) and (iii) their mixture (A3) in increasing the grain and straw yield of rice, nitrogen uptake in grain and nitrogen content in soil was studied in a green house experiment with an alluvial soil in presence or absence of urea nitrogen application. Inoculation significantly increased the grain and straw yield of rice and nitrogen uptake in grain, but the efficiency of inoculation gradually decreased with the increase in the levels of urea nitrogen application, the extent of decrease varying with the algal cultures inoculated. The nitrogen content in the soils after the crop harvest recorded a significant increase due to inoculation but after air drying the soil a marker decrease of the same was observed, which indicated that most of the nitrogen added to the soil by blue-green algae through fixation did not persist after air drying the soil.