Few studies have focused on the combined application of digestate and straw and its feasibility in rice production. Therefore, we conducted a two-year field experiment, including six treatments: without nutrients and straw (Control), digestate (D), digestate + fertilizer (DF), digestate + straw (DS), digestate + fertilizer + straw (DFS) and conventional fertilizer + straw (CS), to clarify the responses of rice growth and paddy soil nutrients to different straw and fertilizer combinations. Our results showed that digestate and straw combined application (i.e., treatment DFS) increased rice yield by 2.71 t ha−1 compared with the Control, and digestate combined with straw addition could distribute more nitrogen (N) to rice grains. Our results also showed that the straw decomposition rate at 0 cm depth under DS was 5% to 102% higher than that under CS. Activities of catalase, urease, sucrase and phosphatase at maturity under DS were all higher than that under both Control and CS. In addition, soil organic matter (SOM) and total nitrogen (TN) under DS and DFS were 20~26% and 11~12% higher than that under B and DF respectively, suggesting straw addition could benefit paddy soil quality. Moreover, coupling straw and digestate would contribute to decrease the N content in soil surface water. Overall, our results demonstrated that digestate and straw combined application could maintain rice production and have potential positive paddy environmental effects.