•Microbial consortium of P. putida and C. vulgaris improved the growth and reduced arsenic induced oxidative stress in rice.•The consortium reduced the accumulation of arsenic and also improved the level of nutrient elements in rice.•Reduced arsenic in rice due to the consortium alleviated the requirement of thiols and antioxidant enzymes. In the present study, arsenic (As) toxicity amelioration potential of a consortium of plant growth promoting rhizobacterium (Pseudomonas putida) and alga (Chlorella vulgaris) was evaluated during arsenate (AsV) exposure to rice (Oryza sativa) plants for 15 d. The consortium mediated amelioration of As toxicity was evident through improved growth of rice plants (root and shoot length and biomass) and reduced oxidative stress as level of superoxide radicals (O2−), hydrogen peroxide (H2O2) and membrane damage. The positive responses were attributable to a significant decline in As accumulation in root (94 mg kg−1 dw) and shoot (51 mg kg−1 dw) in consortium (P. putida + C. vulgaris) inoculated seedlings as compared to As alone exposed plants (156 and 98 mg kg−1 dw, respectively). There were also significant changes in the level of various nutrient elements (Mn, Fe, Co, Zn, Mo and Cu), thiols and in the activities of antioxidant and thiol metabolism enzymes in the consortium inoculated seedlings that allowed the plants to tolerate As stress effectively and achieve better growth. The study demonstrated that consortium of P. putida and C. vulgaris may alleviate As stress and improve growth of rice seedlings along with reduction in As levels.