Eighty-four halotolerant bacterial strains were tested to screen for the efficient halotolerant phosphate solubilizing bacterium (PSB). They were selected mainly on the basis of the solubilizing ability of the insoluble phosphate in the modified Pikovskaya broth under various salt concentrations and temperature. A Bacillus megaterium A12ag was selected as the efficient halotolerant PSB because it demonstrated the highest soluble phosphate solubilization activity under saline conditions. The tomato (Licopersicon esculentum Mill. cv. Seeda) seeds which were inoculated with the bacterium significantly increased the germination percentage and germination index, especially at NaCl concentration between 30 to 90 mM and increased the seedling dry weight at NaCl up to 120 mM. The results suggested that the halotolerant PSB may be used to alleviate the effects of salts and provide great potential for use as biofertilizer in the arid and salt affected areas.