A Gram-positive, rod-shaped bacteria named DY5 was isolated from a peat sample collected from Daeam mountain in Korea. The culture filtrate of the bacterial isolate DY5 showed a broad spectrum of antifungal activity on various crop pathogenic fungi such as Trichoderma koningii, Fusarium oxysporum, Colletotrichum gloeosporioides, Sclerotinia sclerotiorum, Rhizoctonia solani AG-1(IA) For the identification of the DY5, morphological, biochemical, API 50 CHB test, analysis of fatty acid and molecular phylogenetic approaches were performed. The DY5 was found to be a member of the genus Paenibacillus on the basis of morphological and biochemical analysis. The 16S rRNA of DY5 showed high similarity(98%) with Paenibacillus polymyxa. On the basis of these results, the DY5 was identified as Paenibacillus polymyxa. Antifungal substance of the DY5 would be mild alkaline proteine molecule. The DY5 seems to have a great potential to be a biocontrol agent against various crop pathogens.