Field experiments were conducted during 1997–98 and 1998–99 to find out suitable integrated application of nitrogen and biofertilizer for increased grain yield in rice and to study its residual impact on rapeseed. Among the treatments, 80 kg N ha−1 in integration with BGA and Azolla recorded the highest grain yield of rice crop. With regards to the subsequent crop of rapeseed, the same treatment was found to be better in registering higher yield. When rice-rapeseed sequence was considered as a whole, application of 80 kg N ha−1 + Azolla + BGA was remunerative which gave the highest return per rupee investment of 2.33.