Plant growth-promoting rhizobacteria (PGPR) offer a cost-effective and profitable alternative to pesticides and chemical fertilizers in agriculture. The rhizosphere of potato plants, indigenous to the Himalayas, was examined to isolate PGPR. A total of 65 isolates belonging to the Bacillus species were obtained from the rhizosphere. Among these, 7 isolates exhibited positive results for hydrogen cyanide (HCN) production, 5 isolates tested positive for urease production, and 4 isolates showed positive results for nitrogen-fixing potential. Subsequently, the isolates were evaluated for additional plant growth-promoting (PGP) traits, such as ammonia production, nitrate reduction, siderophore production, phosphate solubilization, and antifungal activity. Among all the PGP strains, RA2 followed by DO1 exhibited the highest siderophore units (68% and 61%, respectively) and phosphorus-solubilizing potential (285.22 μg/ml and 249.11 μg/ml, respectively). In vitro stress tolerance to saline and alkaline conditions was also assessed for isolates RA2 and DO1. RA2, along with 4 other bacterial isolates, underwent in vivo testing for promoting the growth of Pea (Pisum sativum). RA2 demonstrated the most notable plant growth-promoting traits and was identified as Bacillus megaterium through biochemical analysis, further confirmed by 16S rRNA sequencing. Moreover, the plastic biodegradation potential of isolate RA2 was examined via scanning electron microscopy (SEM) analysis. Following this, isolate RA2 was successfully encapsulated in sodium alginate beads and talcum powder-based formulations for commercialization, aiming to enhance soil fertility and crop productivity.