Efficacy of plant growth promoting rhizobacteria (PGPR) Bacillus vallismortis strain EXTN-1 has been proved in eliciting induced systemic resistance (ISR) in several crops. The present paper described the beneficial effects of EXTN-1 in potato as increase in yield and chlorophyll content, and plant protection against Potato Virus Y and X (PVY & PVX). EXTN-1 induced systemic resistance to the plants resulting in significant disease suppression in the field. Also the plants under treatment with EXTN-1 had higher chlorophyll content. The bacterized plants had significantly higher yields over the untreated control plants. The strain induced activation of defense genes, PR-1a and PDF 1.2 in transgenic tobacco model, which indicated the possible role of both SA, and JA pathways in EXTN-1 mediated plant protection against crop diseases.