In a greenhouse study, the effects of vermicompost and arbuscular mycorrhizal fungi (AM fungi) bio fertilizers on soil properties and Medicago polymorpha growth were studied. The experiment was set up in a completely randomized design in a factorial layout with five replications. The vemicompost treatment was applied in six different levels, including 0, 15, 30, 45, 60 and 75% fertilizer. Further, AM fungi treatment was applied in two levels (inoculating with and without AM fungi). The results showed a decreasing trend in shoot and root dry weight, potassium content, total nitrogen content (TNC), leaf area, leaf relative water content (LRWC), and water holding capacity (WHC) as the vermicompost application rate decreased. In addition, the AM mycorrhizal fungi inoculation significantly increased shoot and root dry weight, potassium content, TNC, leaf area, LRWC, and WHC values and decreased soil bulk density across all vermicompost treatments. However, soil pH and EC were not influenced by AM fungi. Vermicompost treatments also influenced soil properties, including soil pH, electrical conductivity (EC), and bulk density. A higher vermicompost application rate significantly increased soil pH and EC while it decreased soil bulk density. Overall, bio fertilizers showed positive effects on both soil and plant characteristics and could be recommended for management practices to improve plant productivity and soil fertility in grazing lands.