The growing reliance of contemporary farming on excessive use of artificial chemical fertilizers has resulted in various environmental issues concerning the greenhouse effect, degradation of soil quality, as well as air and water pollution. Additionally, there is a pressing requirement for sustainable agricultural methods worldwide that minimize energy consumption and environmental impacts, while ensuring cost-effective food production to meet the needs of a growing global population. As a result, biofertilizers that incorporate microorganisms such as bacteria, fungi, and algae have emerged as promising alternatives for large-scale agricultural operations. These biofertilizers offer a range of benefits, including their natural composition, environmental friendliness and cost-effectiveness. Moreover, they contribute to preserving the soil structure and biodiversity of agricultural land. In addition to enriching the soil with nutrients, microbial biofertilizers enhance plant growth by improving the efficient uptake and availability of nutrients, as well as by suppressing soilborne diseases. Biofertilizers primarily enhance nutrient levels through three main mechanisms: atmospheric nitrogen fixation, phosphorus solubilization, and synthesis of plant growth-promoting substances. Rhizobia and other nitrogen-fixing bacteria play a crucial role in promoting the growth of legumes and other crops by fixing atmospheric nitrogen. Blue-green algae (BGA) and Azolla also contribute to the nitrogen balance in practical agriculture. Arbuscular mycorrhizal fungi are essential for efficient phosphorus uptake and the absorption of various minerals in numerous plant species. Additionally, bacteria that fix atmospheric nitrogen, including Azotobacter and Azospirillum, increase the solubility and availability of phosphorus to plants, enhancing crop yields. Azospirillum also has additional benefits, such as the ability to synthesize chemicals that promote growth, improve disease resistance, and withstand dry conditions. Consequently, the application of microbial biofertilizers proves to be an effective strategy for improving and sustaining the nutrient balance in soil. This, in turn, reduces the dependence on chemical fertilizers while promoting efficient and sustainable agricultural practices.