AbstractA biofertilizer (BF) based on the plant growth promoting rhizobacterium (PGPR) Bacillus siamensis was produced using anaerobic digestate (AD) as the main ingredient of the growth medium, alongside a carbon source from residual origin. The use of residues for the growth of PGPR reduces the production costs of biofertilizers, but makes an assessment of the possible toxicity of residues for the bacteria or plants necessary. Therefore, the growth medium of PGPR was first optimized using the response surface methodology (RSM), followed by phytotoxicity tests and a field trial of the BF in a sweet pepper (Capsicum annuum L.) crop at two different locations. AD at 50% dilution, supplemented with 2.3% sugar beet molasses, was the optimum growth medium for producing the BF, with a bacterial concentration of 109 cfu mL−1. In the field trial, the treatments inoculated with BF and fertilized with decreased mineral N (80%) produced significantly better yields per ha than the controls with decreased N (80%) and full N (100%) without BF. This indicates improved efficiency of N use by the crop, as a consequence of the use of BF.