ABSTRACT We studied the effects of tillage, crop residues, and green manure on soil carbon pools and hydrolytic enzyme activity in a sandy loam after five cycles of the rice-wheat system (RWS). Four main plot treatments in rice were combinations of wheat straw and Sesbania green manure (GM) management: (1) puddled transplanted rice (PTR) with no wheat straw, (2) PTR with 25% wheat stubbles (12–15 cm long) retained, (3) PTR with no wheat straw plus GM, and (4) PTR with 25% wheat stubbles plus GM. Three subplots treatments in subsequent wheat were (1) conventional tillage with rice straw removed, (2) zero tillage (ZT) with rice straw removed, and (3) ZT with 100% rice straw retained as a surface mulch. The results showed that PTR with wheat stubbles retained plus GM and ZT wheat with rice straw retained (ZTWRS100) significantly (p< 0.05) increased all the carbon pools and hydrolytic enzymes except phenol oxidase and peroxidase activities. The carbon management index under ZTWRS100 retained was significantly higher than zero-till or conventional till wheat without residue. The principal component analysis identified active carbon, less labile carbon pools; xylanase and dehydrogenase hydrolytic enzymes as the most reliable sensitive indicators for assessing soil quality for conservation agriculture (CA) – based practices in RWS. The study showed that adoption of PTR with 25%-anchored wheat stubbles retained plus GM in rice followed by ZTWRS100 in wheat was the best crop production strategy for enhanced carbon pools, hydrolytic enzymatic activities and gives an idea of its overall fitness for carrying out ecosystem functions.