Effects of metabolites produced by Bacillus spp. on Fusarium spp. and poly-beta-hydroxybutyrate (PHB) production by Bacillus isolates were investigated. Antimicrobial activity produced by Bacillus species was obtained on Fusarium spp. Among the tested 5 Bacillus isolates, the highest antifungal effect was found in Bacillus alvei B17. The active compound of Bacillus alvei B17 was extracted from the precipitate with 80 % ethanol. This extract was slightly soluble in butanol but soluble in ethanol, methanol, isopropanol and chloroform. Thin layer chromatographic separation of the extraction of B17 indicated 4 biologically active bands. Poly-beta-hydroxybutyrate (PHB) production by Bacillus isolates was determined spectrophotometrically, and highest productivity percentage of PHB was found in Bacillus alvei B17 (29.4 %). It seems that production of PHB by isolates could have affected metabolite production. The results indicate the potential for development of B17 isolate as biocontrol agent against Fusarium spp., and metabolites may play an important role in reducing disease levels. This work describes, for the first time, the production of metabolites and PHB produced by Bacillus isolates from sugar beet rhizosphere in Turkey.