Botrytis cinerea infection can be very devastating for tomato production, as it can result in a large-scale reduction in tomato fruit production and fruit quality after harvest. Thus, it negatively affects tomato yield and quality. In this study, a biocontrol bacteria CQ-4 was isolated and screened from the rhizosphere soil of tomato plants. Morphological, physiological, and biochemical characteristics and 16S rDNA sequence analysis revealed that it belongs to the species Pseudomonas aeruginosa, which has a strong antagonistic effect against Botrytis cinerea. In addition, the bacterium’s antibacterial spectrum is relatively extensive, and antagonistic tests have shown that it also has varying degrees of inhibition on other 12 plant diseases. The growth promotion test showed that the strain has a clear promotion effect on tomato seed germination and seedling growth. The growth-promoting effect on plant height, stem thickness, dry and fresh weight and main root length of tomato seedlings was significantly improved after the seeds were soaked in a bacterial solution of 2.5 × 108 cfu mL−1 concentration. This did not only maintain the nutritional quality of tomato fruits, but also prevents them from rotting. In vitro and pot experiments showed that the strain CQ-4 can effectively control tomato gray mold, and the control effects on tomato leaves and fruits reached 74.4% and 66.0%, respectively. Strain CQ-4 induce plants to up-regulate the activities of four disease-resistant defense enzymes. The peak enzymatic activities of Phenylalanine Ammonia Lyase (PAL), polyphenol oxidase (PPO), peroxidase (POD), and Superoxide Dismutase (SOD) were increased by 35.6%, 37.6%, 46.1%, and 38.4%, respectively, as compared with the control group. This study found that the strain can solubilize phosphorus, fix nitrogen, and produce cellulase, protease, ferrophilin, and other antibacterial metabolites, but it does not produce chitinase, glucanase, and HCN (hydrocyanic acid). This research screened out an excellent Pseudomonas aeruginosa strain that can stably and effectively control tomato gray mold, and it provided theoretical basis for further development and the application of biological agents.