Paenibacillus polymyxa is an endospore-forming Gram-positive soil bacterium that is well-known for its ability to promote plant growth. Here we report the draft genome sequence of P. polymyxa ATCC 842(T), the type strain of the species P. polymyxa, and the family Paenibacillaceae. A repertoire of biosynthetic genes for antibiotics and hydrolytic enzymes accounts for its beneficial effects in rhizosphere to host plants it associates with.