Zeolite has been previously reported to increase nitrogen (N) use efficiency in lowland paddy fields. However, few results are available regarding its effect on N2O emissions from upland field, especially with mulched drip irrigation. In present study, two-year peanut field experiments were conducted utilizing a split-plot design to assess the impact of zeolite application and irrigation regimes on plant dry weight and N accumulation, soil inorganic N content, peanut yield, N2O emissions, and soil physicochemical properties. Different irrigation regimes (MD, mulched drip irrigation; RF, rain-fed) as well as zeolite application rates (0 t ha−1 (Z0, control), 5 t ha−1 (Z5), and 10 t ha−1 (Z10)) were applied. Results showed that the MD treatment increased plant dry weight, N accumulation, soil NH4+-N, NO3−-N content and mean soil temperature compared to the RF control. Furthermore, cumulative N2O emissions and peanut yield were raised by 24.3% and 15.8%, respectively, with the MD treatment. The increased peanut yield by mulched drip irrigation might be resulted from the promoted soil inorganic N, soil temperature, and plant N accumulation. Regardless of irrigation, zeolite addition increased dry weight and N accumulation during all measured stages except seedling, mean soil NH4+-N, NO3−-N content, mean soil pH, and peanut yield. In contrast, cumulative N2O emissions were decreased compared to the non-zeolite control. Moreover, findings showed that Z10 performed better in increasing peanut yield by 12.7% and decreasing N2O emissions by 35.7% than Z5. Increasing soil inorganic N content with zeolite addition contributed to improve plant N accumulation and promote dry weight and peanut yield. Furthermore, the reduction of N2O emissions by zeolite was related to improved soil inorganic N and pH. Though MD increased N2O emissions, the MDZ10 treatment had 20.6% of cumulative N2O emissions lower than the conventional practice (RFZ0), indicating that zeolite application alleviated the adverse effect of mulched drip irrigation on N2O emissions. It was concluded that zeolite dose at 10 t ha−1 coupled with mulched drip irrigation gave a high peanut yield with less N2O emissions. Our findings could be adopted in arid areas to enhance peanut production and mitigate environmental risk induced by N2O emissions.