Abstract: This study was to find out whether the application of Effective Microorganisms (EM) improves biological nitrogen fixation (BNF) and yield in groundnut under rainfed conditions. Treatments in main plots were two varieties; V1 = 1CG-2261 V2 = 1CGV-86550. It was concluded that yield and BNF were increased by EM, by both ways of application and variety V1 gave better and BNF then V2.