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The continuous cropping barrier is an important factor leading to the decline of watermelon quality and yield. In this study, we focused on a bio-organic fertilizer prepared with one bacterial strain, Bacillus sp. XG-1, to prevent the occurrence of the continuous cropping barrier. The strain XG-1 was isolated from watermelon rhizosphere soil, and promoted the growth of watermelon by producing phytase (0.19 U/mL), indole-3-acetic acid (IAA, 7.31 mg/L), and gibberellins (GA3, 2.47 mg/L). In addition, the strain also possessed a strong ant