The ability of plant growth promoting rhizobacteria (PGPR) for imparting abiotic stress tolerance to plants has been widely explored in recent years; however, the diversity and potential of these microbes have not been maximally exploited. In this study, we characterized four bacterial strains, namely, Pseudomonas aeruginosa PM389, Pseudomonas aeruginosa ZNP1, Bacillus endophyticus J13 and Bacillus tequilensis J12, for potential plant growth promoting (PGP) traits under osmotic-stress, induced by 25% polyethylene glycol (PEG) in the growth medium. Growth curve analysis was performed in LB medium with or without PEG, in order to understand the growth patterns of these bacteria under osmotic-stress. All strains were able to grow and proliferate under osmotic-stress, although their growth rate was slower than that under non-stressed conditions (LB without PEG). Bacterial secretions were analyzed for the presence of exopolysaccharides and phytohormones and it was observed that all four strains released these compounds into the media, both, under stressed and non-stressed conditions. In the Pseudomonas strains, osmotic stress caused a decrease in the levels of auxin (IAA) and cytokinin (tZ), but an increase in the levels of gibberellic acid. The Bacillus strains on the other hand showed a stress-induced increase in the levels of all three phytohormones. P. aeruginosa ZNP1 and B. endophyticus J13 exhibited increased EPS production under osmotic-stress. While osmotic stress caused a decrease in the levels of EPS in P. aeruginosa PM389, B. tequilensis J12 showed no change in EPS quantities released into the media under osmotic stress when compared to non-stressed conditions. Upon inoculating Arabidopsis thaliana seedlings with these strains individually, it was observed that all four strains were able to ameliorate the adverse effects of osmotic-stress (induced by 25% PEG in MS-Agar medium) in the plants, as evidenced by their enhanced fresh weight, dry weight and plant water content, as opposed to osmotic-stressed, non-...