Alfalfa root rot caused by Fusarium tricinctum is one of the most important soil-borne diseases resulting in significant losses to alfalfa agriculture worldwide. Fungicides used in management of disease affect the environment and human health. In this study, a strain of Ochrobactrum intermedium (I-5), isolated from alfalfa rhizosphere soil, exhibited strong antifungal activity against a number of causative pathogens of alfalfa root rot, and showed the strongest antagonistic activity against F. tricinctum (the longest radius/shortest radius ratio of 3.09). When applied at 10%, a filtrate of I-5 liquid culture significantly reduced the spore production and germination and mycelial growth of F. tricinctum, and the inhibition rate was 76.67%, 78.93% and 55.77%, respectively. Furthermore, a filtrate and suspension of the strain, when applied at 10%, reduced alfalfa root rot by more than 73%. The strain clearly promoted the activities of invertase, urease, cellulose, and neutral phosphatase in alfalfa rhizosphere soil and significantly reduced the damage to rhizosphere soil quality attributable to alfalfa root rot. Moreover, the strain clearly promoted the growth of alfalfa, without causing any evident damage to plants. The active substance produced by the strain was relatively insensitive to heat and ultraviolet irradiation and displayed optimal efficacy at pH 8. To the best of our knowledge, this is the first study describing the use of O. intermedium for the biological control of alfalfa root rot. O. intermedium (I-5) has considerable potential for application in the control of alfalfa root rot and improvement of the quality of cultivated alfalfa.