A bacteria strain which can degrade nicotine was isolated from soil collected in the Hubei Enshi area. This strain received the collection number EA-17. Based on morphological observation, physiological and biochemical analysis and 16SrDNA sequence homology analysis, the strain EA-17 was identified as Arthrobacter histidinolovorans. EA-17 strain could grow with nicotine as the sole carbon source and within 24 hours it degraded the 0.5-4 g/L concentration of nicotine. The strain EA-17 was added to tobacco stalk as raw material in the compost fermentation, and the results showed that EA-17 could grow well in compost, nicotine degradation rate could be increased by 50% compared with the control and that the cellulose and hemicelluloses degradation rate increased 26.29% and 17.52%. Through the compost temperature, pH value, total nitrogen, water-soluble ammonium nitrogen and nitrate nitrogen content analysis showed that EA-17 had a positive effect in promoting the maturity of the compost fermentation. Isolation and application of EA-17 is an important breakthrough technology for tobacco stalk bio-organic fertiliser.