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The novel bacterial strain MBLB1776^T was isolated from marine mud in Uljin, the Republic of Korea. Cells were Gram-positive, spore-forming, non-motile, and non-flagellated rods. Growth was observed at a temperature range of 10–45 °C, pH range of 6.0–8.0, and NaCl concentrations of 0–4% (<i>w</i>/<i>v</i>). Phylogenetic analysis of the 16S rRNA gene sequence revealed that MBLB1776^T belonged to the genus <i>Paenibacillus</i> and was closely related to <i>Paenibacillus cavernae</i> C4-5^T (94.83% similarity). Anteiso-C_15:0, iso-C_16:0, C_16:0, and iso-C_15:0 were the predominant fatty acids. Menaquinone 7 was identified as the major isoprenoid quinone. The major polar lipids included diphosphatidylglycerol, phosphatidylglycerol, and phosphatidylethanolamine. Its whole genome was 6.3 Mb in size, with a G+C content of 55.8 mol%. Average nucleotide identity and in silico DNA–DNA hybridization values were below the species delineation threshold. Gene function analysis revealed the presence of a complete C₃₀ carotenoid biosynthetic pathway. Intriguingly, MBLB1776^T harbored carotenoid pigments, imparting an orange color to whole cells. Based on this comprehensive polyphasic taxonomy, the MBLB1776^T strain represents a novel species within the genus <i>Paenibacillus</i>, for which the name <i>Paenibacillus aurantius</i> sp. nov is proposed. The type strain was MBLB1776^T (=KCTC 43279^T = JCM 34220^T). This is the first report of a carotenoid-producing <i>Paenibacillus</i> sp.