Bensulfuron-methyl is an herbicide widely used for weed control although its residues cause damage to other crops during crop rotations. In this study, the biodegrading activity of bensulfuron-methyl by a plant growth-promoting bacterial strain was carried out. Methylopila sp. DKT isolated from soil was determined for bensulfuron-methyl degradation and phosphate solubilization in the liquid media and soil. Moreover, the effects of the herbicide on peanut development and the role of Methylopila sp. DKT on the growth promotion of peanut were investigated. The results showed that the isolate effectively utilized the compound as a sole carbon source and solubilized low soluble inorganic phosphates. Methylopila sp. DKT also utilized 2-amino-4,6-dimethoxypyrimidine, a metabolite of bensulfuron-methyl degradation, as a sole carbon and energy source, and released ammonium and nitrate. The supplementation with Methylopila sp. DKT in soil increased the peanut biomass and the phosphorus content in the plant. In addition, the inoculation with Methylopila sp. DKT in soil and peanut cultivation increased the bensulfuron-methyl degradation by 57.7% for 1 month, which suggests that both plants and the bacterial isolate play a key role in herbicide degradation. These results indicate that the studied strain has a high potential for soil remediation and peanut growth promotion.