Beneficial plant–microbe interactions are essential for sustainable agricultural practices while mitigating environmental stress. This study examines the role of the bacterial strain Allorhizobium borbori in alleviating cadmium contamination by demonstrating positive effects on plant growth-promoting attributes, including starch hydrolysis, phosphate solubilization, indole-3-acetic acid (IAA) production, hydrogen cyanide (HCN) production, and urease activity. These characteristics are critical for a bacterial strain to function effectively as a bioinoculant under stress conditions. Cadmium contamination poses a significant threat by impairing plant growth and yield, as well as disrupting the rhizosphere and its microbial diversity, ultimately destabilizing the entire rhizospheric environment. The studied isolate showed the maximum tolerance concentration (MTC) at 25 mg/l. Experiments including pot assay and PREP assay also showed a significant(p < 0.05) increment in the shoot growth, root elongation, and overall biomass under the different cadmium concentrations. The strain also showed the stress tolerance index (STI) of 30%, an 8.89% decrement in heavy metal tolerance, declining from 453.68% at 15 mg/l Cd with A.borbori to 413.33% at 25 mg/l, compared to the control (100%), showing the inhibition of growth at higher concentration. Moreover, under the same treatment, the growth recovery index declined from 313.14% to 283.98%, reflecting its regenerative capacity of the bacterial strain, which decreased with higher concentration. The decline in GRR, which is the growth reduction ratio from 1.55 at 15 mg/l along with A.borbori to 1.01 at 25 mg/l with A.borbori, both compared to the control, which was 1, indicated growth was inhibited at high concentrations of cadmium. The value of 3.2 Shannon diversity (H’ = 3.2) indicated the enriched robust microbial diversity in the stressed environment, reflecting its importance in restoring the functional resilience and stability. Its environmental application is confirmed by the antibiotic susceptibility profile, which further ensures its biosafety and highlights its role as a green rhizobioinoculant for enhancing crop growth, health, and productivity in stressed agroecosystems.