Apple Valsa canker (AVC), caused by Valsa mali, results in a serious and persistent disease problem for apple production in China and is difficult to control by chemical and agricultural measures. In this study, we determined the inhibitory effects of an endophytic actinomycete Saccharothrix yanglingensis strain Hhs.015 on V. mali under laboratory and the field conditions. Fermentation broth (FB) of Hhs.015 significantly inhibited conidial germination and mycelial growth, causing malformed and dysfunctional fungal structures. Detached apple (Malus domestica 'Fuji') twigs smeared with FB before V. mali inoculation significantly reduced lesion development, especially sporulation. In the orchard trials conducted from 2010 to 2013, trunks and branches smeared with FB three times significantly reduced the number of new lesions. In addition, wounds after lesion surgery coated with FB also enhanced callus formation and significantly improved the cure rate. The results showed that S. yanglingensis Hhs.015 is effective against AVC in orchards. Thus, S. yanglingensis Hhs.015 can be further developed as an effective biocontrol agent for more sustainable management of AVC.