With Bacillus thuringiensis B1 from the red soil as phosphate-solubilizing bacteria (PSB), a pot experiment was conducted to study its effects on the available phosphorous (P) content of the red soil and the growth of peanuts. Four treatments were designed as follow: CK——control; B1——with B1 added; OA——with oxalic acid added; KP——with KH2PO4 added. The results showed that the population of PSB increased significantly in B1 treatment, soil available P, the number of peanuts nodules were increased in B1 treatment compared to control. Inoculation of B1 could promote the growing development of peanut root system. The plant hundred-nutlet weight, the ratio of double pods, the crude protein content of peanut fruit increased 3.8 g, 5% and 2.5% in B1 compared to control. The PSB B1 showed great potential as superior isolate for high efficient biological phosphorus fertilizer.