Bacillus vallismortis EXTN-1, a biocontrol agent in cucumber, tomato and potato was tested in rice pathosystem against rice fungal pathogens viz. Magnaporthe grisea, Rhizoctonia solani and Cochliobolus miyabeanus. Apart from increasing the yield in the bacterized plants (11.6-12.6% over control), the study showed that EXTN- 1 is effective in bringing about disease suppression against all the tested fungal pathogens. EXTN-1 treatment resulted in 52.11% reduction in rice blast, 83.02% reduction in sheath blight and 11.54% decrease in brown spot symptoms. As the strain is proven as an inducer for systemic resistance based on PR gene expression in Arabidopsis and tobacco models, it is supposed that a similar mechanism works in rice, bringing about disease suppression. The strain could be used as a potent biocontrol and growth-promoting agent in rice cropping system.