The aim of this investigation was to study the effect of different levels of chemical fertilizers alone and in combination with farmyard manure and lime on growth, nitrogen fixation, yield and kernel quality of peanut in an acid lateritic soil. Five fertilization levels viz., no chemical fertilizer (CF) (F(0)), CF @ 20:40:30 (F(1)), CF @ 40:80:60 (F(2)) kg ha(-1) NPK, F(1) + 2.5 t ha(-1) FYM (F(3)) and F(2)+5 t ha(-1) FYM (F(4)) with and without liming (2 t ha(-1)) were tested. Results revealed that integrated application of FYM + CF at F(3) level significantly (P <= 0.05) improved the nitrogen content of nodules (12.4%), kernel yield (19.3%), mineral composition, oil content (4.8%), protein content (28.2%) and hydration coefficient (11.6%) of kernels over sole CF at F, level. Maximum level of CF or FYM + CF though improved the population of symbiotic nitrogen fixing bacteria in the peanut rhizosphere, however, could not improve nitrogen fixation, yield and kernel quality. (C) 2007 Elsevier Ltd. All rights reserved.