Frankia CN5 isolated from Coriaria nepalensis Wall. was found comparable to some of its previously reported strains in morphological and physiological characteristics. The isolate produced reddish brown to whitish brown pigmentation on solid medium. Though Qmod medium proved to be the best for isolation but it showed maximum growth on P+N and tween-80 media, in 28 days. In the absence of combined nitrogen, the strain CN5 fixed nitrogen showing acetylene reduction assay (ARA) and was found highly sensitive to higher concentration of NaCI (500mM in yeast extract-dextrose medium). This strain gave the infective and effective results for nodulation on the root system of C. nepalensis. The light microscopy revealed the occurrence of seperate and branched hyphae bearing sporangia and vesicles.