Bulk production and widespread end use of cresol isomers in various industrial processes result in their ubiquitous presence in the environment. Cresols are highly toxic to both fauna and flora and are included in the list of priority pollutants. This study presents the effect of o-cresol on germination of 10 different vegetable crop seeds as tested by the standard Filter Paper Method. The seeds of eggplant and long-podded cowpea were found to be highly sensitive. The most sensitive eggplant seeds were subjected to further studies in soil. Germination percentage and the seedling vigor were drastically reduced in the presence of o-cresol even at a concentration as low as 50 mg kg−1 soil. A number of abnormalities in the seedlings such as stunted root and shoot growth, non-emergence of primary leaves, and negative geotropic growth were observed. Standard 2, 3, 5-tetrazoliumtrichloride test showed marked reduction in the viability of eggplant seeds proportionate to the concentration of o-cresol (0 through 200 mg L−1) they were exposed to, which reached zero at 175 mg o-cresol L−1, indicating the inhibition of the respiratory enzymes of the seeds. Contrary to earlier reports on the effect of phenolics on the hydrolytic enzymes of germinating seeds, in the present case an enhanced activity of amylase was observed in the presence of o-cresol (50 and 150 mg kg−1 soil), whereas the protease activity was partially inhibited at higher concentration. The inhibition of seed germination by o-cresol was revoked by bioaugmentation of the soil with the cresol-degrading Pseudomonas monteilii S-CSR-0014 (2.3 x 108 CFU g−1 wet soil) enabling normal seed germination and seedling growth. The inoculated bacterium degraded 50 and 150 mg o-cresol kg−1 soil efficiently, with concomitant growth. It can be concluded that by bacterial bioaugmentation of o-cresol-contaminated soils the inhibition of germination of crop seeds could be eliminated effectively enabling healthy seedling growth.