This study reports the improvement in the predictability of circulation and precipitation associated with monsoon intraseasonal oscillations (MISO) when the initial state is produced by assimilating Atmospheric Infrared Sounder (AIRS) retrieved temperature and water vapour profiles in Weather Research Forecast (WRF) model. Two separate simulations are carried out for nine years (2003 to 2011) . In the first simulation, forcing is from National Centers for Environmental Prediction (NCEP, CTRL) and in the second, apart from NCEP forcing, AIRS temperature and moisture profiles are assimilated (ASSIM). Ten active and break cases are identified from each simulation. Three dimensional temperature states of identified active and break cases are perturbed using twin perturbation method and carried out predictability tests. Analysis reveals that the limit of predictability of low level zonal wind is improved by four (three) days during active (break) phase. Similarly the predictability of upper level zonal wind (precipitation) is enhanced by four (two) and two (four) days respectively during active and break phases. This suggests that the initial state using AIRS observations could enhance predictability limit of MISOs in WRF. More realistic baroclinic response and better representation of vertical state of atmosphere associated with monsoon enhance the predictability of circulation and rainfall.