Soil isolate Kitasatospora sp., an indole-3-acetic acid (IAA) producing strain was encapsulated in calcium alginate bead for soil applications. It was studied for growth pattern culturally, as well as by optical and scanning electron microscopy. The surface of the bead was found to be teaming with mycelial microcolonies
showing hyphae formation initially and sporulation by the seventh day of entrapment. The immobilized cells produced higher concentration of IAA over a prolonged period compared to free cells. Similar results were also found when the free and entrapped cells were inoculated in sterile and simulated soil. Kitasatospora sp. demonstrated fairly good tolerance to adverse environmental conditions, viz. pH, temperature, salinity and heavy metals, particularly under encapsulation, rendering it suitable for application under variable soil conditions.