Phoebe bournei is a rare and endangered plant endemic to China with higher-value uses in essential oil and structural wood production. Its seedlings are prone to death because of its undeveloped system. Paclobutrazol (PBZ) can improve root growth and development in certain plants, but its concentration effect and molecular mechanism remain unclear. Here, we studied the physiological and molecular mechanisms by which PBZ regulates root growth under different treatments. We found that, with moderate concentration treatment (MT), PBZ significantly increased the total root length (69.90%), root surface area (56.35%), and lateral root number (47.17%). IAA content was the highest at MT and was 3.83, 1.86, and 2.47 times greater than the control, low, and high-concentration treatments. In comparison, ABA content was the lowest and reduced by 63.89%, 30.84%, and 44.79%, respectively. The number of upregulated differentially expressed genes (DEGs) induced at MT was more than that of down-regulated DEGs, which enriched 8022 DEGs in response to PBZ treatments. WGCNA showed that PBZ-responsive genes were significantly correlated with plant hormone content and involved in plant hormone signal transduction and MAPK signal pathway-plant pathways, which controls root growth. The hub genes are observably associated with auxin, abscisic acid syntheses, and signaling pathways, such as PINs, ABCBs, TARs, ARFs, LBDs, and PYLs. We constructed a model which showed PBZ treatments mediated the antagonism interaction of IAA and ABA to regulate the root growth in P. bournei. Our result provides new insights and molecular strategies for solving rare plants’ root growth problems.