This experiment was carried out at Barramoon Experimental Farm in 1999/2000 and 2000/2001 to study the effect of different levels of chemical and bio-nitrogen fertilizers on growth and yield of chamomile plants. Chemical nitrogen fertilizer ammonium sulphate (20.6% N) was added at three levels 0, 200 and 400 kg/fed. Three levels of bio-nitrogen fertilize, i.e. 1, 2 and 4 kg/fed biogein were inoculated in seedling / hold before transplanting the seedling. In addition, combinations between ammonium sulphate and biogein were examined. Chemical nitrogen fertilizer caused significant increases in plant growth, yield of flower-heads and oil content. The highest values were recorded at 400 kg/fed ammonium sulphate. Bio-nitrogen fertilizer produced enhancement in growth characters and yield particularly at the highest rate (4 kg/fed biogein). The best results were recorded with combination between ammonium sulphate at 200 kg/fed and biogein at (2 & 4) kg/fed. It could be concluded that bio-nitrogen fertilizer (biogein) combined with chemical nitrogen fertilizer (ammonium sulphate) caused a reduction in the values of total nitrogen percentage in leaves and flowers of chamomile plants. On the other hand, the highest production of flowers and oil percentage were observed with prementioned treatment.