In recent years, polybutylene adipate-co-terephthalate (PBAT) mulch film has become one of the most commonly used biodegradable mulch films in agriculture in an attempt to combat plastic film pollution. However, its degradation characteristics and impact on the soil environment and crop growth are affected by many factors such as its composition, soil and crop types, local climate characteristics, etc. In this study, PBAT mulch film and ordinary polyethylene (PE) film were used as test materials, with non-mulching treatment (CK) as a control, to study the applicability of PBAT film in Moyu County, Southern Xinjiang region, using tomato growth as an example. The results showed that PBAT film started its induction period after 60 days, and 60.98% of the PBAT film was degraded within 100 days. Generally, the soil temperature and humidity preservation functions of this film were comparable to that of PE film in the seedling and flowering–fruiting stages of tomato growth. In the mature stage, the soil humidity under PBAT film was significantly lower than that of PE film due to its substantial degradation rate. However, this did not have any significant negative effects on tomato growth, yield, and quality. The tomato yield of 667 m2with BPAT was insignificantly lower than that of PE film by 3.14%, and both were significantly higher than that of the CK treatment by 63.38% and 68.68%, respectively, indicating that it is feasible to use PBAT film to cultivate crops such as tomato in the arid region of Southern Xinjiang, China.