The excessive and indiscriminate use of chemical fertilizers in the past has brought serious soil and other environmental problems so alternatives over this agrochemical are being searched. Our study focuses on the effects of expanded rice hull inoculated with selected beneficial microorganisms on growth (through agronomic characters), yield and yield components, and grain quality indices of rice. Results showed that favorable effects of different expanded rice hull preparations were not readily apparent at vegetative stage and only treatments with supplemental chemical fertilizer application were comparable with the conventional practice. Expanded rice hull combined with 50% rate of chemical fertilizer exhibited a significantly higher yield (6,471 kg ha-1) over conventional practice (5,719 kg ha-1). Good milling quality indices were observed in treatments having 50% chemical fertilizers plus alternatives from expanded rice hull. Finally, we demonstrated that chemical fertilizer rate can potentially be reduced into 50% if combined with expanded rice hull, and show even better output than chemical fertilizer alone.