Cyanobacteria are prominent inhabitants of many agricultural soils, where they potentially contribute towards biological nitrogen fixation, help in phosphate solubilization and mineral release to improve soil fertility and crop productivity. However, beside naturally fertilizing and balancing mineral nutrition in the soil, many cyanobacteria are known to release various kinds of biologically active substances like proteins, vitamins, carbohydrates, amino acids, polysaccharides and phytohormones that function as elicitor molecules to promote plant growth and help them to fight against biotic and abiotic stress. These metabolites produced by the cyanobacteria affect the gene expression of the host plants and thereby bring about qualitative and quantitative changes in the phytochemical composition of the plants. Experiments carried out with live inoculum or with the extracts of cyanobacterial strains on several plant species, such as rice, wheat, maize, cotton etc., have demonstrated the synthesis of signalling metabolites. Thus, in view of its beneficial effect, this paper reviews the role of cyanobacteria in triggering the growth and development of plants and hence its utilization in agriculture.