Seed dressing with fungicides adversely affects the structure and function of beneficial soil microbial communities and consequently crop yield. This study was aimed to evaluate the impact of technical-grade fungicide tebuconazole on plant growth promoting potentials of tebuconazole-tolerant Rhizobium isolate MRP1. The performance of the isolate MRP1-inoculated pea plants grown in tebuconazole treated soils was also assessed. Generally, the three concentrations [100 (recommended dose), 200 and 300μgkg −1 soil] of tebuconazole when used alone, adversely affected the growth, symbiosis, grain yield and nutrient uptake by pea plants. Concentration dependent phytotoxicity of tebuconazole was observed for all the measured parameters. On the contrary, fungicide tolerant Rhizobium sp. MRP1 in the presence of fungicide increased the measured parameters at all tested concentrations. As an example, when inoculant MRP1 was also used with 300μg tebuconazole kg −1 soil, it substantially increased the root nitrogen, shoot nitrogen, root P, shoot P, seed yield and grain protein by 20, 19, 50, 31, 15 and 7%, respectively, when compared with uninoculated plants grown in fungicide-treated soils. The study suggests that the plant growth promoting Rhizobium sp. MRP1 can be used as bacterial inoculant to increase the production of pea in soils polluted with fungicides.