The research work comprises two parts. The first part deals with rapid composting process utilizing cellulolytic nitrogen-fixing bacteria, including Azotobacter beijerinckii, Azotobacter vinelandii and Lysobacter sp. on different types of composting materials. In Control, straw was used as composting material. The second Treatment 1 (T-1), straw, water hyacinth and cow dung were used as composting materials, while Treatment 2 (T-2), straw, water hyacinth and cow dung were used as composting materials and treated with cellulolytic nitrogen-fixing bacteria for rapid composting. The process was completed in 16 weeks (four months), 8 weeks (two months) and four weeks (one month) respectively which showed T-2 took a short duration of one month. During the process, variation in temperature, pH, volume, moisture content, C:N ratio were observed in different treatments. In the second part, the finishing products of T-2 was used as a peat carrier for formulation of biofertilizer named as “Test” and the effectiveness of this formulated biofertilizer on the growth and yield of eggplant (Solanum melongena L.) was conducted. In this formulated biofertilizer, the three cellulolytic nitrogen-fixing bacteria, Sacchromyces cervisiae and Bacillus megaterium were used. The “Test” biofertilizer showed its effectiveness in the yield of eggplant fruits compared with the yield using formerly formulated biofertilizer with highly significant difference level (p <0.2).