Piriformospora indica is an axenically cultivable phytopromotional endosymbiont that mimics capabilities of arbuscular mycorrhizal fungi. This is a basidiomycete of the Sebacinaceae family, which promotes growth, development, and seed production in a variety of plant species. We report that the cell wall extract (CWE) from P. indica induces tuberization in vitro and promotes tuber growth and yield in potato. The CWE altered the calcium signaling pathway that regulates tuberization process. An increase in tuber number and size was correlated with increased transcript expression of the two Ca2+-dependant proteins (CaM1 and St-CDPK1) and the lipoxygenase (LOX) mRNA, which are known to play distinct roles in potato tuberization. External supplementation of Ca2+ ions induced a similar set of tuberization pathway genes, indicating presence of an active Ca2+ in the CWE of P. indica. Since potato tuberization is directly influenced by the presence of microflora in nature, the present study provides an insight into the novel mechanism of potato tuberization in relation to plant-microbe association. Ours is the first report on an in vitro tuber-inducing beneficial fungus.