Bacillus thuringiensis (or Bt) is a soil-dwelling bacterium, commonly used as a biological alternative to a pesticide; alternatively, the Cry toxin may be extracted and used as a pesticide. They are now used as specific insecticides under trade names such as Dipel and Thuricide. B. thuringiensis also occurs naturally in the gut of caterpillars of various types of moths and butterflies, as well as on the dark surface of plants.
During sporulation many Bt strains produce crystal proteins (proteinaceous inclusions), called δ-endotoxins, that have insecticidal action. This has led to their use as insecticides, and more recently to genetically modified crops using Bt genes. There are however many crystal-producing Bt strains that do not have insecticidal properties.

Spores and crystalline insecticidal proteins produced by B. thuringiensis have been used to control insect pests since the 1920s. Because of their specificity, these pesticides are regarded as environmentally friendly, with little or no effect on humans, wildlife, pollinators, and most other beneficial insects.
B. thuringiensis-based insecticides are often applied as liquid sprays on crop plants, where the insecticide must be ingested to be effective. It is thought that the solubilized toxins form pores in the midgut epithelium of susceptible larvae.