The present study aimed to identify potential endophytic bacteria that can promote the growth of eggplant (Solanum melongena) and have antagonistic activities against the phytopathogen that causes wilt disease. In this study, 53 endophytic bacteria were isolated from eggplant and screened against Fusarium spp. isolated from wilt-affected areas. The pathogenicity of F. oxysporum was confirmed and was inhibited by two bacterial strains, SS_BR06 and SS_BR09. However, a potent bacterial strain, SS_BR06, with various plant growth-promoting (PGP) traits and better inhibition against Fusarium oxysporum was selected. Selected strain SS_BR06 was identified using 16S rDNA homologies as Bacillus velezensis. The strain exhibited PGP traits such as phosphate solubilization (61.26 μg ml⁻1), nitrogen fixation, production of IAA (12.8 μg ml⁻1), ammonia, ACC deaminase, siderophore, and hydrolytic enzymes. In addition, strain SS_BR06 enhanced the seedling growth parameters, such as the fresh and dry weight, length of the root and shoot, and the photosynthetic pigments (p ≤ 0.05). Fluorescent microscopy showed bacterial colonization in inoculated seedling roots. Surfactin and iturin lipopeptides were found by LC-MS and PCR. Live-dead staining and scanning electron microscopy (SEM) showed cell death and deformation in F. oxysporum mycelia treated with lipopeptide extract and bacterial suspension. Finally, reduction in severity of the disease and upregulation of defense-related enzyme production, such as SOD, POD, PPO, and PAL after bacterial treatment, confirmed the biocontrol potential and induction of systemic resistance. In conclusion, the present investigation reveals the potential of strain SS_BR06 in PGP of eggplant and environmentally friendly suppression of F. oxysporum.