A greenhouse experiment was carried out to study the effect of Azoffa and for cyanobacteria inoculation each alone or in combination with different levels of chemical nitrogen fertilizer (urea) on rice growth and yield production. The slight higher rice yield increases observed in cyanobacteria (CSBl) inoculated pots were not significantly different from corresponding non- inoculated treatments. Applying 60 kg N fed'1 as urea and! or as Azoifa had similar effect on 1grain yield. The highest grain yield was obtained with the combination of 30 kg N fed' as urea and 30 kg N fed‘1 as Azofla. This value was not significantly different from those obtained with 60 kg N fed'1 as urea but was significantly higher than that obtained by the use of 60 kg N fed‘1 as Azofla. Azoffa and l or cyanobacteria did not affect the rice harvest index. The nitrogen use efficiency decreased with increasing nitrogen level. The highest plant nitrogen uptake was recorded when Azolfe mixed with urea at 30 kg N fed' each. Results show that Azolla application alone or in combination with urea are more beneficial to rice than inoculation with cyanobacteria. Azoffa also increased significantly the soil organic carbon content.