This study investigated the ameliorative role of composted Azolla (CA) as a microbial biostimulant to improve maize growth, soil fertility, and resilience under water-limited conditions. A composted Azolla was developed, which is mainly composed of microbial consortium, Paenibacillus polymyxa DSM 36 and Trichoderma asperellum NBRC 30498. Maize (Zea mays) seedlings were grown under two irrigation regimes (normal and deficit) with CA, autoclavable composted Azolla (ACA) and commercial fertilizer (CF), respectively. At the vegetative stage, the deficit irrigation was performed by withholding the water for 14 days before morphophysiological and biochemical parameters were assessed. Results revealed that CA significantly enhanced shoot and root growth, biomass production, and drought recovery compared to CF and ACA. Under deficit irrigation, CA-treated plants achieved greater shoot length (60.33 ± 3.33 cm) and dry weight (0.59 ± 0.31 g), along with thicker cortical roots and larger xylem vessels. Soil amended with CA exhibited higher nitrogen (2.75 ± 0.04%), carbon (23.76 ± 0.39%), microbial abundance (9.88 × 10⁸ cfu/mL), and moisture retention. Biochemical assays showed improved chlorophyll content (188.69 µg g⁻¹ FW) and elevated proline levels, signifying enhanced photosynthetic stability and osmotic adjustment. This result demonstrated an ameliorative role of composted Azolla in mitigating drought-induced stress while improving soil health and physiological performance of maize production.