This study focuses on the role of chilli root endophytic bacteria Bacillus toyonensis AVSW 2 in promoting plant growth of tomato and fungal antagonism against Fusarium oxysporum .AVSW 2 ability regarding fungal antagonism, SEM of root colonization , optimization of growth and enhancing production of Indole-3- acetic acid, phosphate solubilizing, Ammonia and siderophore production, subsequently followed by in vitro plant growth promotion of tomato using seed bacterization were evaluated . Potential volatile organic compounds and secondary metabolites production were studied using GC-MS and HPLC. AVSW 2 showed 22.17 μg/ml of Ammonia production, 18.23 μg of IAA production ,29 psu of siderophore and 51.33 ppm of phosphate solubilization under optimized growth conditions (40 0 C, pH 7, 1% NaCl,1% Glucose ,1% Peptone and 60 hours of incubation ). In AVSW 2 inoculated tomato plants , plant growth promoting traits such as root length, shoot length, no of leaves, no of lateral roots, biomass , protein and carbohydrate content and antifungal traits are higher compared to untreated control .2-[2-(2- Butoxyethoxy)ethoxy-trimethyl silane , 2-Ketoisocaproic acid, trimethylsilyl ester, O-methylisourea, 1-Butanamine , n-methyl-n- nitroso- are the significant compounds identified in GC-MS analysis of B.toyonenis AVSW 2 responsible for fungal antibiosis, root colonization and plant growth promotion.