A method for the treatment of myeloma and thymoma by administering a therapeutically effective dose of Mycobacterium indicus pranii with Cyclophosphamide. This disclosure generally relates to the field of cancer biology. More specifically, this disclosure relates to the immunotherapeutic treatment of myeloma and thymoma, using a combination of heat killed Mycobacterium indicus pranii and the widely administered chemotherapeutic drug, Cyclophosphamide. Mycobacterium indicus pranii has already shown its efficacy as an immunomodulator and has been safely administered to humans. The most common method of cancer management is the application of chemotherapeutic drugs which results in side-effects. At lower non-toxic doses Cyclophosphamide is not effective. The present disclosure discloses a method of improving efficacy of non-toxic doses of Cyclophosphamide by administrating it together with Mycobacterium indicus pranii. This disclosure is relevant for the treatment of other lymphomas as well.