The full-genome sequence of the bluetongue virus serotype 1 (BTV-1) strain Y863, the first BTV-1 isolate of Eastern origin found in China, was determined. The virus was isolated from sheep during a severe outbreak of bluetongue in Shizhong County, Yunnan Province, southwest China, in 1979. The total size of the BTV-1 strain Y863 genome is 19,170 bp. Phylogenetic analyses demonstrate that it belongs to the major "Eastern" BTV topotype. The sequence information provided here will help in understanding the geographical origin and spread of this Chinese isolate of BTV-1, as well as aid in its comparison with global isolates of BTV-1 from sheep, cattle, and other host species origins.