The field experiments were carried out at the Indian Agricultural Research Institute, New Delhi during 1996–97 to 1998–99 to study the effect of phosphate solubilizing bacteria (PSB) and incorporation of wheat and rice residue on the relative efficiency of diammonium phosphate (DAP) and Mussoorie rock phosphate (MRP) in three cycles of rice–wheat cropping system. Application of MRP had no significant effect on grain and straw yield and P uptake by rice and wheat; however, when it was inoculated with PSB, it increased grain and straw yields as well as P uptake of both rice and wheat. Efficiency of MRP+PSB was further increased when rice and wheat residues were incorporated and this practice made MRP on a par with DAP. Available P in soil after three cycles of rice–wheat cropping was more after MRP+PSB and incorporation of rice and wheat residues than after DAP. The results of the present study, therefore, indicate that low grade rock phosphate such as MRP can be advantageously utilized in rice–wheat cropping system when applied with PSB inoculation and incorporation of rice and wheat residues.