Bacillus strain PE1, which was isolated from potatoes harvested in the Yaqui Valley, Mexico, was evaluated as a potential biological control agent against Fusarium languescens. The draft genome sequence was obtained through Illumina NovaSeq sequencing, revealing a genomic size of 4,071,293 bp, with a G + C content of 44.13%, an N50 value of 357,305 bp, and 27 contigs. The taxonomic affiliation was confirmed by analyzing the 16S rRNA gene and overall genome relatedness indices (OGRIs) and constructing a phylogenomic tree based on the whole genome, which showed a close relationship to Bacillus cabrialesii subsp. cabrialesii. Genomic annotation using RAST and Prokka identified 4261 coding DNA sequences (CDSs) distributed across 331 subsystems, highlighting genes associated with biocontrol, stress response, and iron acquisition. AntiSMASH 7.1 was used for genome mining, revealing seven biosynthetic gene clusters that potentially produce biocontrol-related metabolites. In vitro assays confirmed the antagonistic activity of strain PE1 against Fusarium languescens CE2, demonstrating its potential to inhibit mycelial growth. The study provides a genomic basis for investigating B. cabrialesii subsp. cabrialesii PE1 as a potential biological control agent in potato production.