Atractylodes lancea is a perennial herb containing multiple medicinal ingredients that is currently at risk due to habitat shortages and improper planting. Its cropping method makes Atractylodes lancea affected by allelopathy, due to lack of ventilation. Endophytic bacteria have been reported to be able to increase the growth of hosts in many species. To promote the yield of Atractylodes lancea cropping and explore whether intraspecific allelopathy could be relieved by endophytic bacteria, we designed an airborne signal exchange system and found that ethylene produced by neighboring plants is a chemical agent that decreases the root length and dry weight of nearby Atractylodes lancea, also decreasing the essential oil content at the same time. Our results showed the endophytic bacterium Pseudomonas fluorescens (ALEB7B) was able to suppress the airborne signal of allelopathy by decreasing ethylene emissions. Unlike cases where pathogen or herbivore enhances plant-plant interactions in which decrease the growth of nearby plants, treatment with ALEB7B improves the growth of nearby plants and increases essential oil production of neighbors. These results were further confirmed by transcriptome analysis in pot experiments. Our result revealed that ethylene emitted by Atractylodes lancea has an intraspecific allelopathic effect that can be relieved by the endophytic bacterium Pseudomonas fluorescens by decreasing ethylene emission. This study discovered a new mode how endophytic bacterium promote the growth and essential accumulation.