Abstract. Using of commercial bacteria showed unacceptable results in inoculation trials. This necessitates looking for locally isolated nitrogen fixing bacteria to use as inoculants. This study was done to isolate and select the most efficient bacteria from groundnut (Arachis hypogaea) root nodules. In this study three bacterial strains were isolated from El-Gadarif, El-Gezira and El-Obied soils and pot experiments were done. The study showed that, the field nodules were found distributed on both main and lateral roots of groundnut. The colour of nodules obtained from El-Gadarif soil was pink, while the nodules obtained from El-Gezira and El-Obied soils were of a white colour. All strains were Gram negative, white, circular, viscous, did not absorb Red Congo indicator, produced yellow colour and acidified Yeast Extract Mannitol Agar with bromothymol blue, fast growing, grew in Peptone Glucose Agar medium. All bacterial strains induced nodule formation to groundnut and unable to form nodules in Phaseolus valgaris and Vigna senesis. Inoculation of groundnut by the isolates enhanced groundnut growth. The strain isolated from groundnut nodules in El-Gadarif soil was found the best for groundnut growth promotion. The isolates in the present study showed high symbiotic effectiveness. The study concluded that the strains isolated were fast growing Rhizobia like. Isolation and application of local nitrogen fixing bacteria may resolve the competitiveness and environmental conditions variation and fluctuation problems in the field.