A pot experiment was conducted to study how soil animals (earthworms and bacteria-feeding nematodes) impact microbial characteristics (microbial biomass carbon and nitrogen, basal respiration, microbial quotient, urease and acid phosphatase), soil nutrients (available phosphorus and nitrogen) and peanut yield in upland red soil. Four treatments were designed: no inoculation (CK), inoculated earthworms (E), inoculated bacteria-feeding nematodes (N), inoculated earthworms and nematodes (EN). The results showed that: ①Both earthworms and nematodes increased microbial biomass carbon and nitrogen, nematodes contributed more to soil microbial biomass carbon than earthworms; ②inoculating soil animal (earthworms and/or nematodes) enhanced soil basal respiration, nematode enhanced more than earthworm, except E treatment in pod filling stage; ③E, N and EN significantly increased soil urease and acid phosphatase activities (P<0.05) except in pod setting stage; ④ E, N and EN increased soil available phosphorus and available nitrogen; ⑤the increase range of peanut yield was 17% to 20% after inoculating soil animal. In conclusion, inoculation of earthworms and nematodes could improve microbiological characteristics, soil fertility of upland red soil and finally increase peanut yield.