Field studies during dry and wet season of 2011 and 2012 were made at research farm of DRR, Rajendranagar to assess the role of bioactivator treated nitrogen (N) fertilization on enhancing the productivity and N use efficiency of rice. The mean data indicated that bioactivator treatment of urea at 75% recommended dose of N (RDN) and RDN (180 and 120 kg ha^-1 in dry and wet seasons) has brought in 21.1 and 9.7 (dry seasons) and 12.7 and 5.3 % (wet seasons improvement in rice grain yield over no bioactivator treated N (3.08 and 3.70 t ha^-1 in dry seasons and 5.53 and 6.01 t ha^-1 in wet seasons). Marked activation of microbes (bacteria, fungi and actinomycetes) by bioactivator were seen when vermicompost was applied along with 50% RDN. Application of bioactivator treated RDN is recommended for realizing higher profits (Rs. 10, 239 and 40,996) from rice crop.