To explore the yield-increasing mechanism of mechanized potato planting with corn straw mulching, a two-year (2021 and 2022) field experiment was conducted to study the effects of mechanized no-tillage with straw mulching on potato yield and water use efficiency. This experiment included mechanized no-tillage potato planting with corn straw mulch covering (JG), plastic film mulching (HM), and open flat planting (CK). The results showed that mechanical no-tillage with straw mulching significantly affected soil water content in the 0–100 cm soil layer, yield, and water use efficiency (p < 0.05). There was no significant difference in yield between JG and HM, but it was significantly higher than that of CK. The yield of JG was 3.09~12.27% higher than that of CK. The yield increase was mainly achieved by increasing the potato weight per plant (0.697~0.862 **) and the average single potato weight (0.048~0.631). The tuber weight per plant was positively correlated with the plant height at the seedling stage (0.03~0.92 **) and positively correlated with the dry weight of stems and leaves at the tuber expansion stage and starch accumulation stage (0.74 **~0.95 **). It was negatively correlated with the number of branches at the tuber formation stage (−0.33~−0.88 **). Compared with CK, JG could significantly improve the water use efficiency of potatoes and reduce water consumption during the whole growth period of crops. In 2021, JG was 6.5% higher than CK, and HM was 6.88% lower than CK. In 2022, JG and HM increased water use efficiency by 26.17% and 14.50% compared with CK. When HM is applied in heavy soil areas, soil compaction can easily occur, which affects seedling emergence and reduces yield. At the same time, JG has strong adaptability to soil types and good yield stability. It can be seen that JG is a green and efficient mechanized potato cultivation technology suitable for dry farming areas.