Background: Aflatoxin B1 (AFB1) is a mutagenic and carcinogenic compound mainly produced by the Aspergillus parasiticus, A. flavus, A. nomius, A. tamari, and A. pseudotamarii. AFB1 biodegradation is the most important strategy for reducing AFB1 in plant tissues. Bacteria can deactivate and biodegrade AFB1 for effective detoxification of contaminated products. The present study investigated the efficiency of AFB1 degradation by soil bacteria from the Southern Khorasan Province in Eastern Iran by thin-layer and high-performance liquid chromatography during 2014–2015. Methods: DNA was extracted from AFB1-degrading isolates by the cetyltrimethylammonium bromide method and the 16S rRNA gene was amplified with the 27f and 1492r general bacterial primers and the sequences were used to identify the isolates based on their similarity to Gene Bank sequences of known bacterial species. Results: We isolated five strains from four species of AFB1-degrading bacteria from Birjand plain, including Bacillus pumilus, two isolates of Ochrobactrum pseudogrigonens, Pseudomonas aeruginosa, and Enterobacter cloace, which had AFB1-degrading activities of 88%, 78%, 61%, 58%, and 51%, respectively. Conclusion: We provide the first demonstration of AFB1 degradation by B. pumilus in from Iran and the first report identifying O. pseudogrigonens and E. cloace species as having AFB1-degrading activity.