The invention discloses Bacillus licheniformis 202, which has been preserved in China Center for Type Culture Collection, Wuhan University, Luojiashan Street, Wuchang District, Wuhan City, Hubei on July 2, 2007, wherein the preserving number is CCTCC NO: M207093. The invention also discloses a preparation method and application thereof. A Bacillus licheniformis 202 strain is obtained by screening through plate confronting and pot experiment, can effectively inhibit the growth of banana vascular wilt pathogens, has a wide antimicrobial spectrum, has antagonistic action on a plurality of pathogenic fungi such as cotton wilt pathogens, cotton verticillium wilt pathogens, watermelon wilt pathogens, tomato wilt pathogens, curvularia leaf spot pathogens or banana anthracnose pathogens, and has good environmental safety and good development and application prospect.