Nematode infestations pose a severe threat to global banana production, leading to substantial yield losses and economic damage. Among these, the root-knot nematode Meloidogyne incognita is particularly detrimental, causing root galls that severely impair water and nutrient uptake, leading to stunted growth, reduced fruit quality, and significant economic losses for farmers. In the face of increasing agricultural challenges, bacterial endophytes have emerged as essential tools for sustainable agriculture, offering ecofriendly solutions to enhance plant health and manage pests. The present study aims to identify and characterise biomolecules from bacterial endophyte Bacillus velezensis (YEBBR6) with potential nematicidal properties against root-knot nematode Meloidogyne incognita infecting banana. The analysis of volatile and non-volatile organic compounds (VOCs/NVOCs) from the inhibition zone during the ditrophic interaction between B. velezensis (YEBBR6) and Fusarium oxysporum f.sp. cubense (Foc) revealed the presence of several distinctive biomolecules with antifungal and antimicrobial properties. These compounds included linoelaedic acid, nonanol, acetylvaleryl, 5–hydroxyl methyl furfural, clindamycin, allobarbital, 3-thiazolidine carboxamide, azulene, aminomorpholine, procyclidine, campholic acid, 3 amino-4 hydroxy phenyl sulfone, 3–deoxy mannoic lactone, hexadecanoic acid, oleic acid, and dihydroacridine. The in-silico analysis revealed that nonanol, exhibited strong binding efficacy against M. incognita protein targets, including cytochrome C oxidase subunit 1, calreticulin, neuropeptide G-protein coupled receptor, chorismate mutase 1, venom allergen-like proteins, and β-1,4-endoglucanase. Notably, nonanol proved more effective than the commercially used nematicide carbofuran 3G. Molecular dynamics studies further supported the potential of nonanol, and its nematicidal properties were validated through in vitro and pot culture studies. Moreover, nonanol was found to induce the expression of defense-related genes, such as MAPK10, WRKY22, ascorbate peroxidase, catalase, and NADPH oxidase, in banana seedlings, thus enhancing the plant's immune response. These findings highlight the potential of nonanol, derived from B. velezensis (YEBBR6), as a potent and environmentally friendly alternative for controlling nematode infestations in banana cultivation.