Companion cropping with wheat (Triticum aestivum L.) can enhance watermelon [Citrullus lanatus (Thunb.) Matsum. & Nakai] wilt disease resistance against Fusarium oxysporum f. sp. niveum. However, the mechanism of resistance induction remains unknown. In this study, the effects of microbial community dynamics and the interactions between wheat and watermelon plants, particularly the effect of wheat root exudates on watermelon resistance against F. oxysporum f. sp. niveum, were examined using a plant-soil feedback trial and plant tissue culture approach. The plant-soil feedback trial showed that treating watermelon with soil from wheat/watermelon companion cropping decreased watermelon wilt disease incidence and severity, increased lignin biosynthesis- and defense-related gene expression, and increased β-1,3-glucanase activity in watermelon roots. Furthermore, soil microbes can contribute to increasing disease resistance in watermelon plants. Tissue culture experiments showed that both exogenous addition of wheat root exudates and companion cropping with wheat increased host defense gene expression, lignin and total phenols, and increased β-1,3-glucanase activity in watermelon roots. In conclusion, both root exudates from wheat and the related soil microorganisms in a wheat/watermelon companion cropping system played critical roles in enhancing resistance to watermelon wilt disease induced by F. oxysporum f. sp. niveum.