The bacterial strain LZN01 is a potential biocontrol agent that produces myriocin and inhibits the growth of Fusarium oxysporum f. sp. niveum (Fon). To characterize strain LZN01, the Illumina HiSeq + PacBio sequencing platform was used to sequence its genome. Unicycler software was used to perform genome assembly and antiSMASH to predict gene clusters responsible for secondary metabolite biosynthesis. The genome comprises 3973236 bp and has a 46.52% G + C content. Genome annotation predicts 4031 coding DNA sequences (CDSs), 27 rRNAs and 86 tRNAs. Strain LZN01 was identified as Bacillus velezensis based on phylogenomic analysis. We identified 14 gene clusters associated with the synthesis of antimicrobial secondary metabolites, including surfactin, fengycin, bacillibactin and bacilysin, among others. There are also genes associated with induced systemic resistance and plant growth promotion, such as biofilm formation, swarming motility, root colonisation, phosphate solubilisation, phytohormone production, acetoin and 2,3-butanediol synthesis. Many genes are associated with plant–bacteria interactions, including pectinase and galactosidase genes. We inferred that the genes epsN, capD, dagK, glk and manA are associated with myriocin biosynthesis. Overall, our data provide a valuable reference for further studies of the biocontrol mechanisms of strain LZN01 as a promising agent for application in agricultural practice.