Groundnut, known as Arachis hypogaea L., is India's significant oil seed crop. Dry root rot, caused by Rhizoctonia bataticola, poses a substantial challenge to cultivating groundnuts. During the roving survey, 60.50% dry root rot disease incidence was recorded in Namakkal district, Tamil Nadu. This study aims to acquire salt-tolerant endophytic bacteria residing in groundnuts with significant antagonistic activity against R. bataticola. A total of 27 bacterial strains were isolated from groundnuts. Among these strains, RMV 3 and RMV 2 are the most effective isolates, exhibiting 60.1% and 50% inhibition zones, respectively. The effective isolates were characterized through morphological, biochemical and phytostimulation activities and 16S rDNA sequencing. Among the isolates, RMV 3 and RMV 2 showed positive results for siderophore, indole acetic acid (IAA) and cellulase test. The strain RMV 3 was identified as Bacillus subtilis through 16S rDNA sequencing. GC-MS analysis identified twenty bioactive compounds produced by B. subtilis RMV 3, such as pyrrolo [12-a] pyrazine-14-dione hexahydro-3 (2-methylpropyl) and hexadecanoic acid methyl ester. The crude metabolite assay demonstrated a 96.6% inhibition of R. bataticola by RMV 3. This study demonstrated that Bacillus subtilis RMV 3, which exhibits a robust antagonistic effect on R. bataticola, can potentially be an effective biocontrol agent for groundnut dry root rot.