According to Cornell University, the reason for planting basil and sweet peppers together is that the two plants have similar growing requirements. Both plants thrive in full sunlight, which means they need at least six hours of direct sun daily. They both require quick-draining soil to avoid fungus and rot problems, and each plant benefits from a layer of organic mulch around its base to retain moisture and battle weed problems. Basil and sweet peppers thrive on deep, infrequent waterings to keep their roots moist.
Basil's aroma and atmosphere enhances the flavor of the pepper plants. Basil is best known to have this effect on tomatoes, which lends to basil being one of the main flavor components in tomato sauces. The sweet, tangy tasty and scent of the basil plant settles onto the sweet peppers' skins and enhances the natural taste.
Basil is a natural insect repellent. It benefits peppers by keeping pests away. Insects traveling from plant to plant can transport fungi, bacteria and dirt, which may harm the peppers. According to Cornell University, the basil plant repels flies and mosquitoes, as well as plant-specific pests, such as tomato hornworms, asparagus beetles and carrot flies. The herb drives away thrips, small, flying insects that feed on flowers and vegetables.
Basil does not repel aphids. Aphids are small insects that feed on the leaves of the plant. Although aphids are very small and difficult to see, identify an aphid infestation by the sticky substance known as honeydew accumulating on the undersides of the leaves. For companion planting purposes, most aromatic plants, including chives, mint, clover and garlic, naturally repel these insects.