Abstract: An inoculant tolerant, aqueous fungicidal composition, is provided which is substantially free of organic solvents, comprising a fungicidally effective amount of at least one fungicidally active compound; a stabilizing effective and nitrogen-fixing bacteria tolerant amount of a preservative; and at least one anionic surfactant. The composition is tolerant to nitrogen-fixing bacteria such as Rhizobium spp. when applied concurrently or sequentially to plant propagation materials such as seeds; the inventive compositions are storage stable, ready-to-apply (RTA), ecologically and toxicologically favorable and have good fungicidal efficacy.