The performance of bioinoculants and chemical fertilisers on net photosynthetic rate (Pn), transpiration rate (E), stomatal conductance (Gs), inter cellular CO2 concentration (Ci), chlorophyll, reducing sugars and total phenols in leaves and total seedling dry matter was assessed in oil palm seedlings grown in nursery for 12 months. Bioinoculants viz. Azotobacter chroococcum, Azospirillum brasilense, Bacillus megaterium, Frateuria aurantia, and Glomus aggregatum were used individually, combindly and integrated with chemical fertilisers. There were significant differences among the treatments used in experiment for various physiological and biochemical characters. Of all the treatments, integrated use of microbial fertilisers with 25% of recommended dose of chemical fertilisers (RDF) has emerged as the best promising treatment in influencing the above mentioned characters. The results of the study clearly indicated that minimal dose of chemical fertilisers (25% RDF) may be required for exploiting the best possible growth benefits from bioinoculants.