Entomopathogenic fungi Metarhizium species are generally employed to manage the soil-dwelling stage of insect pests, and are known for their rhizocompetency property. Since this fungus is typically recommended for use in soil, it could potentially be investigated as a bioinoculant to reduce abiotic stress, such as salinity, along with improved plant growth promotion. Salt stress tolerance potential of native Metarhizium isolates was evaluated based on mycelial fresh weight, dry weight, and spore yield. All the isolates were found to tolerate NaCl concentrations (50 mM, 100 mM, 150 mM, 200 mM, 250 mM, and 300 mM) supplemented in the culture medium. Metarhizium anisopliae (AAUBC-M15) and Metarhizium pinghaense (AAUBC-M26) were found to be effective at tolerating NaCl stress up to 200 mM NaCl. These two isolates were analyzed in vitro for plant growth-promoting traits at elevated salt concentrations (100 and 200 mM NaCl). No significant effect on IAA production was reported with the isolate M. pinghaense (AAUBC-M26) (39.16 µg/mL) or in combination with isolate M. anisopliae (AAUBC-M15) (40.17 µg/mL) at 100 mM NaCl (38.55 µg/mL). The salinity stress of 100 mM and 200 mM NaCl had a significant influence on the phosphate solubilization activity, except in the co-inoculation treatment at 100 mM NaCl. The isolates were positive for ACC deaminase enzyme activity. An increase in salt concentration was accompanied by a steady and significant increase in chitinase enzyme activity. Total phenolics (149.3 µg/mL) and flavonoids (79.20 µg/mL) were significantly higher in the culture filtrate of Metarhizium isolates at 100 mM NaCl, and gradual decline was documented at 200 mM NaCl. M. pinghaense (AAUBC-M26) proved to be promising in reducing the salt stress in tomato seedlings during the nursery stage. In the pot culture experiment, the treatment comprising soil application + seedling root dip + foliar spray resulted in improved growth parameters of the tomato plant under salt stress. This study shows that Metarhizium, a fungus well known for controlling biotic stress brought on by insect pests, can also help plants cope with abiotic stress, such as salinity.