Present paper is an attempt to evaluate the antifungal potentiality of Fossombronia indica St. and Cyathodium tuberosum Kash. extracts from Purandar and Panhala localities of Western Ghats, Maharashtra. Antibacterial activity of three different organic solvents and aqueous extracts of liverworts were tested against four different bacterial strains viz. Bacillus substilis (NCIM 2697), Escherichia coli (NCIM 2067), Pseudomonas aeruginosa (NCIM 2200) and Staphylococcus aureus (NCIM 2492) by disc diffusion assay method. All extracts express better but variable antibacterial activities. Greater inhibitory activity showed by F. indica St. ethanol extract against S. aureus. Antibiotic amphicillin have more sensitivity to S. aureus as compared to all extracts. Liverworts associated soil was analyzed for physicochemical and biological characteristics.