This study introduces an indigenous bacterial strain, Exiguobacterium sp. (L.O), isolated from sugarcane fields in Sevur, Tamil Nadu, which has adapted to prolonged exposure to dimethoate. The strain demonstrated the capability to utilize 150 ppm of dimethoate as its sole carbon source, achieving a remarkable degradation rate of 95.87% within 5 days in mineral salt media. Gas chromatography-mass spectrometry (GC-MS) analyses identified the presence of intermediate by-products formed during degradation, like methyl diethanol amine and aspartyl glycine ethyl ester. Notably, phosphorothioic O, O, S-acid, an expected end product in the degradation of dimethoate, was also identified, further confirming the strain's effective metabolic breakdown of the pesticide. Further degradation study and analysis of changes in functional group was performed by FTIR, and a hypothetical degradation pathway was elucidated showing the course of dimethoate metabolism by the strain. Exiguobacterium sp. (L.O) also displayed significant plant growth-promoting traits, including the production of HCN, IAA, and ammonia and the formation of biofilms, which enhance its utility in agricultural applications. The ecotoxicity study revealed the degradation by-products exhibited reduced toxicity compared to the parent compound dimethoate, highlighting the strain's potential not only for bioremediation but also for supporting sustainable agricultural practices. This research presents a novel application of Exiguobacterium sp. (L.O), integrating the bioremediation of the organophosphate pesticide dimethoate with agricultural enhancement. This approach is critical for addressing the challenges associated with pesticide pollution in agricultural practices. This study is likely the first to demonstrate the application of this strain in the degradation of dimethoate, as suggested by an extensive review of the literature.