Drought stress is considered as one of major abiotic stresses; it leads to reduce plant growth and crop productivity. In this study, we selected bacterial strains for alleviating drought stress in chili pepper plants. As drought-tolerant bacteria, 28 among 447 strains were pre-selected by in vitro assays including growth in drought condition with polyethylene glycol and plant growth-promoting traits including production of 1-aminocyclopropane-1-carboxylate deaminase, indole-3-acetic acid and exopolysaccharide. Sequentially, 7 among pre-selected 28 strains were screened based on relative water content (RWC); GLC02 and KJ40, among seven strains were finally selected by RWC and malondialdehyde (MDA) in planta trials under an artificial drought condition by polyethylene glycol solution. Two strains GLC02 and KJ40 reduced drought stress in a natural drought condition as well as an artificial condition. Strains GLC02 or KJ40 increased shoot fresh weight, chlorophyll and stomatal conductance while they decreased MDA in chili pepper plants under a natural drought condition. However, two strains did not show biocontrol activity against diseases caused by Phytophthora capsici and Xanthomonas campestris pv. vesicatoria in chili pepper plants. Taken together, strains GLC02 or KJ40 can be used as bio-fertilizer for alleviation of drought stress in chili pepper plants.