Application of starter Nitrogenous fertilizer with rhizobial strains have been hypothesized to increase yield and yield parameters. Hence, to exploit productivity potential of Faba bean(Vicia faba L) a field study was conducted in Arsi zone 2015/16 and 2016/17.The test crop was uninoculated, inoculated with strain FB-1017,and supplied with six rates of Nitrogen (T1 = -Ve control ( No input),T2 = 9 N kg/ha,T3 = 18 N (kg /ha),T4 = 27 -N (kg /ha),T5 = 36 -N (kg /ha),T6 = 54 -N (kg /ha)).The treatments were laid out in randomized complete block design with split plot arrangements with three replications. Application of inoculants and starter nitrogen at different levels indicated that plant height (at three locations), grain yield (at one location) and number of seeds per pod were improved significantly (p<0.05) otherwise did not improve none of yield and yield parameters in both years. In that case, though inconsistent a grain yield of more than five quintals per hectare than the negative control (uninoculated, unfertilized) was found by the highest fertilized treatment (54 kg ha-1). The results suggest that application of starter nitrogen to small holder farmers is not economical and inoculation with trust worthy and viable strains would suffice in compromise to environmental and profit margins and more studies in different locations ought to be executed for a few locations as such might not give required result.