Eucalyptus oil is a rich source of bioactive compounds with a variety of biological activities and is widely used in traditional medicine. Eucalyptus citriodora is cultivated for the production of essential oils. However, the mode of antibacterial action of essential oils from E. citriodora is not well-known. This study aimed to determine the chemical components, microbial inhibitory effect, and mechanism of action of the essential oil from E. citriodora. The oil was extracted from E. citriodora leaves by hydro-distillation and the chemical components were analyzed using gas chromatography-mass spectrometry. The antibacterial activities of eucalyptus oil against gram-positive bacteria (Bacillus subtilis, Staphylococcus aureus, and Staphylococcus intermedius) and gram-negative bacteria (Escherichia coli and Pseudomonas aeruginosa) were screened by disc diffusion method and quantitative analysis was conducted by the microdilution method. The mechanism of action of the extracted essential oil was observed using SEM and analyzed by SDS-PAGE. The major components of E. citriodora oil were citronellal (60.55 ± 0.07%), followed by dl-isopulegol (10.57 ± 0.02%) and citronellol (9.04 ± 0.03%). The antibacterial screening indicated that E. citriodora oil exhibited prominent activity against all tested strains. The minimum inhibitory concentration (MIC) and minimum bactericidal concentration (MBC) against B. subtilis were 0.5% and 1.0%, respectively. The MIC and MBC concentrations against S. aureus, S. intermedius, E. coli, and P. aeruginosa were 1% and 2%, respectively. As observed by SEM, the antibacterial mechanism of E. citriodora oil involved cell wall damage; SDS-PAGE revealed decrease in protein bands compared to untreated bacteria. Thus, E. citriodora oil showed significant antimicrobial properties and caused cellular damage.