Abstract: The present disclosure relates to a process for preparation of a peptide of sequence ID No. 1 having a formula C231H354N66O83 from an endophytic bacterium Paenibacillus peoriae IBSD35 isolated from the stem of Millettia pachycarpa. The genome size of Paenibacillus peoriae IBSD35 is 5.8 Mb, 45.6% GC content. The bioactive peptide designated as Peoriaerin IBSD35 of SEQ ID No. 1 was purified from the fermentation broth of P. peoriae strain IBSD35 and characterized with ESI (nano-spray)-TOF MS/MS spectrum. The peptide sequences were generated using MASCOT, MS-MS ion search. It has 54 amino acids residue and protein size is 5383.747 Da. The peptide of sequence ID No. 1 prepared by the present process exhibited broad spectrum of antibacterial and antifungal activity. It is highly resistant and stable to enzyme, detergent and environmental factors. It has the potential for drug development against AMR pathogens. It can also be used as food preservatives.