The heavy metal pollution is one the most serious pollution in soil with hazardous dumps and causes wide spread health hazards and loss of biodiversity. Use of trees for phyotremediation of metal contaminated sites is considered as effective and eco-friendly technique. Due to stabilization of metals in wood for longer life span and in high biomass which may protect it from pest and diseases. In present study attempt was made to assess the impact of Cadmium on microbial population and enzymatic activity in soil and the potential of Neem (Azadirachta indica) to remediate soil contaminated artificially with different concentrations of Cadmium (Cd). The inoculation of Cd in soil was found to reduce the microbial population and dehydrogenase activity as a function of increase in the metal concentration. Neem accumulated 0.79 to 0.60 ppm Cd in roots and shoots within two month if grown in soil with 5 ppm of the metal. The tree was significantly tolerant to the Cd contamination and could be grown with same reduction in biomass in 5 ppm Cd contaminated soil for 2 months. The highest bio-concentration factor and translocation factor was observed to be 0.5 and 0.79 at 3 and 2 ppm of Cd, respectively.