The Fusarium cugenangense (F. cugenangense) was used as indicators to screen the best antagonistic bacterial from rhizosphere soil of tea plants infected with root rot disease by plate confrontation method. Strain TJ-1 with the best antagonistc effect was obtained, and its antifungal rate was 74.67%. Strain TJ-1 was identified as Paenibacillus terrae by physiological and biochemical tests and 16S rRNA sequencing analysis. The inhibitory effect of strain TJ-1 on mycelia growth of F. cugenangense, the growth characteristics of strain TJ-1, the antagonistic effect of different metabolites of strain TJ-1 against F. cugenangense, the antagonistic effect of strain TJ-1 on other crop pathogens and the growth promoting potential of strain TJ-1 were further studied. The results showed that the antagonistic strain TJ-1 can cause entanglement and shrink of the mycelium of F. cugenangense and can enlarge the branch of the mycelium. After 18- hour-growth, the strain TJ-1 entered the stable phase. The optimal pH for strain TJ-1 is 5-7, and the growth was significantly inhibited in the environment containing more than 2% NaCl. The antagonistic strain TJ-1 has antagonistic effect on 9 kinds of crop pathogens, and the antagonistic effect against Phomopsis vexans is up to 80.6%. Both volatile and non-volatile substances produced by antagonistic strain TJ-1 had antagonistic effect on F. cugenangense. The strain TJ-1 showed the ability of phosphorus dissolution, nitrogen fixation and iron production, indicating the strain has growth promoting potential.