Drought is the most limiting factors affecting plant development. It severely affects the crops and leads to serious reductions in yield. There are certain nutrients which also act as limiting factor for plants such as phosphorus and nitrogen. Under the conditions of nutrient limitations, growth is greatly reduced. Plant associated microbiome are gaining attention as they help the host (plant) to combat stress conditions. In the present study, stress-adaptive and phosphorus-solubilizing microbes were isolated from rhizosphere of different crops such as wheat, maize, foxtail millet, and finger millet growing in NW Indian Himalayas. A total of 70 microbes were isolated using different defined and selective growth media. The isolated microbes were screened for plant growth promoting (PGP) ability of phosphate solubilization using three different insoluble phosphorus (P) substrates (apatite, tricalcium phosphate and rock phosphate) under the drought stress conditions (5–8% PEG-8000). Among isolated microbes 27 isolates exhibited P-solubilizing attribute under the water deficient conditions. The two efficient drought-adaptive and P-solubilizing isolates were identified as Acinetobacter calcoaceticus EU- LRNA-72 and Penicillium sp. EU-FTF-6, respectively, by 16S rRNA and 18S rRNA gene sequencing. The isolates EU- LRNA-72 and EU-FTF-6 were evaluated for plant growth promoting (PGP) traits and mitigation of drought stress in foxtail millet under the controlled and natural conditions. The isolates A. calcoaceticus EU- LRNA-72 and Penicillium sp. EU-FTF-6 efficiently mitigated the adverse effects of drought in foxtail millet by enhancing the accumulation of glycine betaine, proline, sugars, and decreasing lipid peroxidation. The drought tolerant P-solubilizing microbes could be useful for plant growth promotion and mitigation of drought stress for crops growing under the water deficient conditions.