The soil microflora shelters community of dynamic microorganisms affecting biological activities of plant pathogens. Essential oil of Thymbra spicata oil is known to have antibacterial property. However, Enterobacter sp., which is able to decompose essential oil of Thymbra spicata and its main component carvacrol, was identified using 16S rDNA analysis. To elucidate this inhibitory effect, antifungal properties of secreted metabolites were investigated using bioautography of culture filtrates production of indole acetic acid (IAA) and chitinase. Chitinase expression was confirmed using SDS-PAGE staining by protein extraction from culture mediums. Therefore, we detected that biodegraded metabolites have also plant promoting effect on plants and inhibitory effect to Fusarium oxysporum and Rhizoctonia solani. These findings suggested that Enterobacter sp. is an IAA and chitinase producer that induces plant growth and biological agent to soil-borne pathogens.