ABSTRACT. Seeds of three species of lupine (Lupinus tennis, L. triticale and L. albus) were tested to determine if the seed contains diffusable substances toxic to bradyrhizobia. L. albus seeds were less toxic to bradyrhizobia, followed by L. triticale. Six strains of Bradyrhizobium were evaluated for their resistance to the toxic substances in lupine seeds. Zones of growth inhibition were determined on yeast-mannitol-agar medium surrounding surface-sterilized seed. The effect of surface sterilization of seeds by different chemical treatments on seed toxicity was assessed. Seeds soaked in water for 1 h before placing on agar surface significantly decreased the inhibition zone. Also, the effect of soaking seeds in water for 4 h before planting and inoculation on nodulation, nitrogen fixation and plant growth were investigated. Addition of seed diffusate to soaked seeds significantly decreased nodulation and plant growth. Autoclaving the seed diffusate had no effect on the toxicity of the seed diffusate. Addition of the absorbent polyvinylpolypyrrolidone (PVPP) to seed diffusates significantly decreased the inhibitory effect of seed diffusate on nodulation and plant growth. Seed diffusate substances were water-soluble, heat-stable and partially bound to PVPP.