In this present study the ability of Gluconacetobacter diazotrophicus in dinitrogen fixation associated with sugarcane suggests that the endophyte is of considerable in cane yields as well as sugar recovery. The endophtic bacterium CDZ-8 fixed about 17.26 ± 0.42 Amount of “N” fixed (mg/g of malate) in our study. All the twenty isolates of Gluconacetobacter were graded into three gategories on the basis of their dinitrogen fixing efficiency of 15 (mg/g of malate), above 10- 14 (mg/g of malate) and below 10 (mg/g of malate). A range of 15 percent of isolate in dinitrogen fixing efficiency of 15 (mg/g of malate), 55% of isolate in dinitrogen fixing efficiency of 10- 14 (mg/g of malate) and 30% of isolate below 10 (mg/g of malate).