Exploration of bioactive compounds from plant endophytes increases the chance of finding novel compounds. Three endophytic bacteria having antimicrobial activity was isolated from the medicinal plant Leucas aspera. Due to superior antimicrobial activity, the strain isolated from roots of the plant was selected for further studies. It was characterized by morphological, cultural and biochemical studies. Scanning electron microscopic study supported the morphology of the cells. It has plant growth promoting attributes such as zinc solubilization, ammonia and organic acid production. Based on molecular and phylogenetic analyses, the strain presented 100% similarity to Enterobacter ludwigii strain Gol9. Bioactive compound was extracted from the isolate using a three solvent system and it showed zones of inhibition against both Gram negative and Gram positive bacteria. Thin layer chromatographic separation followed by FTIR and GC-MS analysis indicated a number of compounds. GC-MS analysis revealed six peaks of which the highest peak was shown by 1, 2-benzenedicarboxylic acid with a retention time of 40.761. The bioactive compound was found to possess anti-oxidant activities as well. These findings revealed that the endophytic bacterium isolated from Leucas aspera has the ability to produce potential bioactive compounds.