A process for liquid application of a dry microbial preparation to seeds is described wherein superior survival is obtained upon drying of the preparation on the seeds. The process for coating seeds with dry, dormant microorganisms according to the invention includes an initial step of forming the dry, dormant microorganisms. Seeds are then coated with a composition comprising the dry, dormant microorganisms, water, and an additive effective for enhancing survival of the microorganisms during exposure to the water used in the coating and subsequent drying process.