Lateral roots (LRs) can continuously forage water and nutrients from soil. In Arabidopsis thaliana, LR development depends on a canonical auxin signaling pathway involving the core transcription factors INDOLE-3-ACETIC ACIDs (IAAs) and AUXIN RESPONSE FACTORs (ARFs). In this study, we identified a protein, bacillolysin, secreted by the beneficial rhizobacterium Bacillus velezensis SQR9, that is able to stimulate LR formation of Arabidopsis. The receptor protein kinase C-TERMINALLY ENCODED PEPTIDE RECEPTOR2 (CEPR2) interacts with bacillolysin and plays a critical role in LR development. In the bacillolysin-regulated signaling pathway, the transcriptional repressor IAA34 interacts with PUCHI to activate downstream LATERAL ORGAN BOUNDARIES-DOMAIN33 (LBD33) expression, consequently inducing LR development. This study reveals interkingdom communication via a protein that mediates a novel pathway to induce LR development.