The invention provides penicillium oxalicum capable of degrading 2-phenethyl alcohol produced from rice straw and application thereof. The penicillium oxalicum is penicillium oxalicum T1, and was preserved in the China Center for Type Culture Collection. The preservation number is CCTCC M 2019608. The penicillium oxalicum T1 provided by the invention has good cellulose degradation ability, can produce cellulase, and has strong endoglucosidase activity, filter paper enzyme activity, exonuclease activity and beta-glucosidase activity; and the penicillium oxalate T1 can degrade 2-phenethyl alcohol produced by degradation of rice straw. The fermentation broth that degrades rice straw can inhibit Phomopsis sp., Magnaporthe grisea and Fusarium oxysporum.