ACC deaminase producing Plant growth promoting rhizobacteria (PGPR) offers a great promise for ameliorating the negative impacts of salinity stress manifested on plants. In this context, 28 rhizospheric bacteria associated with ACC deaminase potential (198−1069 nmol α-ketobutyrate mg protein−1 h−1) were isolated from 5 different islands of Lakshadweep, union territory, India- Agatti, Kavaratti, Bangaram, Kadmat, and Thinnakara islands using DF-minimal medium. The diversity of cultivable ACC deaminase producing bacteria was analysed by PCR-RFLP (Restriction Fragment Length Polymorphism) method using three endonucleases AluI, MspI and HaeIII which led to the grouping of these isolates into six clusters at 80 % similarity index. Subsequently, isolates were functionally characterized for various PGP traits such that indole-3-acetic acid (IAA) production (∼10−80 μg mL−1); 16 isolates had phosphate solubilizing potential ranging from ∼19 to 88 P mg L−1 ; siderophore and ammonia production abilities were observed in 5 and 24 isolates, respectively while two strains tolerated up to 8% NaCl. Phylogenetic analysis of 16S rRNA gene sequences of representative strain from each cluster revealed that twenty-eight ACC deaminase producing PGPR belong to eight distinct genera: Pseudomonas, Bacillus, Azospirillum, Azotobacter, Escherichia, Paenibacillus, Burkholderia, and Klebsiella. Two isolates, CO1 (Pseudomonas putida) and CO8 (Bacillus paramycoides) were evaluated for plant growth promoting effects on French bean (Phaseolus vulgaris) under salinity (100 mM NaCl) stress. Both the selected isolates in consortium form significantly increased the root length, shoot length, root fresh and dry weight, shoot fresh and dry weight of French bean seedlings exposed to salinity stress, compared to non-inoculated control plants. The co-inoculation with selected strains CO1 and CO8 has significantly improved chlorophyll concentration, relative water content, membrane stability index, gas exchange parameters including net photosynthesis rate (PN), stomatal conductance (gs), transpiration rate (E) and water use efficiency of French bean plants by ∼100 %, ∼85 %, ∼40 %, ∼198 %, ∼80 %, ∼70 % and ∼75 %, respectively under saline conditions in comparison with non-inoculated plants. Moreover, the consortium treated French bean plants showed lower levels of stress-induced ethylene by 38 %, electrolyte leakage and Malondialdehyde (MDA) content by ∼15 % under salt stress compared to non-inoculated ones. This study unveiled the potential of halotolerant strains, Pseudomonas putida and Bacillus paramycoides as French bean biofertilizers in mitigating the adverse effects of salinity in plant growth in sustainable agriculture.