Abstract: Soybean (Glycine max L: Fabaceae) is a mycotrophic (mycorrhizal) legume grown commercially for human consumption. It is a major grain legume cultivated in Sri Lanka. The greenhouse experiment was conducted to determine the influence of mycorrhizae as a substitute for inorganic fertilizer on growth and yield of Soybean (Glycine max) and observe how mycorrhizae inoculation affect to yield of soybean and soil microbial activity in drought condition.