Moisture stress poses a significant threat to global agriculture, compromising crop yields and food security. In the quest for sustainable solutions, endophytic microorganisms have emerged as promising candidates for enhancing plant resilience to drought. The study's primary goal was to analyse the significance of bacterial endophytes, both rhizobial and passenger endophytes, in alleviating the effects of moisture stress. Here, PEG 6000 was used to test the drought endurance of the ten identified rhizobial and passenger endophytes. Rhizobium pusense S6R2, Enterobacter cloacae S23 and Bacillus tequilensis NBB13 were selected as best performing endophytes as they showed high tolerance of poly ethylene glycol (PEG) and maximum plant growth promoting traits like Indole Acetic Acid, exopolysaccharide production, biofilm formation, 1-aminocyclopropane1-carboxylate (ACC) deaminase activity, siderophore, zinc and phosphorous solubilisation even in PEG induced moisture stress condition. Metabolite analysis revealed that twenty-four significant compounds mostly belong to fatty acyls, amino acids, peptides, polyketides, and benzenoids were found in the root exudates of groundnut treated with endophytes. The best-performing endophytes were used in a pot culture experiment, with groundnut as the test crop. The current study found that co-inoculation of Rhizobium pusense S6R2 and Enterobacter cloacae S23 significantly increased nodule number, growth, photosynthetic pigment, anti-oxidant enzymes, and osmolyte under moisture stressed conditions when compared to other treatments. As a result, co-inoculation of Rhizobium and entophytic bacteria may be recommended as a bio-inoculant for groundnut for moisture stress alleviation after confirming the results in field evaluation.