The effects of twenty Bacillus isolates were investigated in vitro on the second stage juveniles of cereal cyst nematode, Heterodera avenae. The isolate XZ33-3 showed significant results against juveniles (J2s) mortality followed by the isolate of XZ 17-1, XZ 24-2-1, MH 58-60-10, MH 58-60-04 and isolate MH 01-04-01, respectively. Among them four Bacillus isolates were identified on molecular basis using 16S rDNA, physiologically and biochemically and grouped as plant growth promoting bacteria (PGPB). In the green house experiments identified isolates; B.cereus XZ 24-2-1, B. cereus XZ-33-3, B. weihenstephansis MH-58-60-01, B. thuringiensis MH 032-003 and a nematicide (Avermectin) were used as seed coating. All four Bacillus isolates significantly reduced nematode infection of wheat roots when juveniles were used as inoculum after 10 days post inoculation. Noteworthy reduction in white female cyst development was observed on roots treated with Avermectin seed coating followed by isolates B. cereus XZ 24-2-1, B. cereus XZ-33-3, B. weihenstephansis MH-58-60-01 and B. thuringiensis MH 032-003 as compared to control treatment.