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Abstract: seed coating with beneficial endophytic bacteria and polymers enhances plant growth and stress tolerance, offering a sustainable approach. But bio-cellulose seed coating is in demand because it provides a protective, biodegradable matrix that enhances bacterial survival, adhesion to seeds, and effective colonization of the rhizosphere. This study evaluated ten cellulose-producing endophytes (CPE) for plant growth-promoting traits and abiotic stress tolerance, followed by their encapsulation in a cellulose-based seed coating for wheat growth. Among the isolates, Acetobacter tropicalis (CPE1), Pseudomonas sp. (CPE3), Bacillus amyloliquefaciens (CPE4), Pseudomonas aeruginosa (CPE7), and Enterococcus sp. (CPE9) exhibited superior characteristics and were selected for further study. CPE3 showed the highest indole-3-acetic acid production (304 μg mL^-1) and mineral solubilization indices (PSI 325, KSI 321, ZnSI 212). Scanning electron microscopy revealed that dip-coated seeds were uniformly covered with bio-cellulose, ensuring firm bacterial attachment, whereas spray-coated seeds showed an uneven coating layer. Under sterile conditions, bio-cellulose-coated seeds showed improvement 60%-90% in seed-germination, 60%-70% in a seedling-vigor-length index, and 80%-95% in a seedling-weight-vigor-index as compared to untreated control. Wire-house and field trials also confirmed improved seed-germination (85%-92%), morphological traits (60%-80%), physiological traits (50%-85%), and yield (70%-85%) as compared to untreated control seeds. Biochemical analysis indicated enhanced chlorophyll-a, carotenoids, soluble sugars, and protein contents, along with reduced chlorophyll-b and proline levels. Bacterial viability within the cellulose matrix remained stable (10⁵-10⁷ CFU g^-1) for up to 120d under ambient storage. In conclusion, cellulose-based seed coating represents a promising formulation for maintaining survival of beneficial microbes and improving crop performance, providing a sustainable approach for agricultural systems.