Abstract: Studies were conducted to assess if the sludge supplementation in soil induces stress in plants. Tomato plants variety Pusa Hybrid 2 was raised in soils supplemented with sludge in different proportions (25, 50, 75 and 100%). Measurement of morphological, physiological and biochemical indices indicated no alteration in the growth till 50%, though an inhibition in growth was noted at higher concentrations. The levels of malondialdehyde (MDA) and hydrogen peroxide (H2O2) did not show any change in comparison to control till 50% concentration. The increase in MDA and H2O2 at higher concentrations (75 and 100%) suggested the induction of oxidative stress. The accumulation of compatible solutes was evident in plants raised in soil supplemented with high proportions of sludge (75 and 100%). Studies suggested that sludge supplementation in soil promote growth in plants up to a certain concentration without inducing stress.