A bacterial strain isolated from chilli pepper was identified as Bacillus amyloliquefaciens using VITEK 2, MALDI-TOF mass spectrometry, and 16S rRNA sequencing. Designated SBCHGBA1, this strain was assessed for its ability to inhibit the growth of Aspergillus species and suppress aflatoxin synthesis. On trypticase soy agar, SBCHGBA1 exhibited strong antifungal activity against Aspergillus flavus MTCC2798 and Aspergillus parasiticus MTCC411. Among 15 Aspergillus flavus strains tested, 13 produced detectable aflatoxin levels (7.0-257.4 µg/l) in trypticase soy broth after 14 days at 25 °C. Remarkably, co-cultivation with SBCHGBA1 completely inhibited aflatoxin production in all except in one strain. Additionally, a 77% reduction in aflatoxin content was observed in chilli pepper inoculated with Aspergillus flavus MTCC2798 when co-cultured with SBCHGBA1. These findings highlight Bacillus amyloliquefaciens SBCHGBA1 as a promising biocontrol agent for mitigating aflatoxin contamination in chilli peppers and related food systems.