Rice straw poses a significant challenge for rice-wheat cropping systems owing to its high silica content, often leading farmers to burn or remove it for seedbed preparation. However, these practices harm the environment. A study spanning the Rabi seasons of 2019–20 and 2020–21 aimed to address this issue, evaluating diverse rice straw management techniques. The investigation featured seven treatments, including the removal and incorporation of rice straw, to assess their impact on wheat yield and their economics. The experiment followed a randomized block design, ensuring each treatment appeared in every block, maintaining block uniformity. The treatments encompassed variations in recommended Nitrogen doses, straw incorporation, top dressing with nitrogen, and decomposer application. The wheat variety PBW-373 was utilized as the test crop, and various growth and yield attributes were analyzed. Treatment T6 consistently outperformed other approaches over both years. It entailed incorporating 5 t ha-1 of rice straw alongside 125% of recommended nitrogen, 60 kg ha-1 of phosphorus, and 40 kg ha-1 of potassium, with the application of additional top dressing nitrogen. T6 exhibited substantial improvements in wheat yield attributes, including plant height, dry matter accumulation, leaf characteristics, tiller count, spike length, grains per spike, and grain weights, and generated superior economic outcomes compared to alternative methods. Incorporating rice straw into the soil emerged as a promising strategy to enhance soil quality and productivity while addressing environmental concerns. This research underscores the potential of sustainable rice straw management, with maximum benefits demonstrated through the integrated application of Crop residues with a decomposer consortium and additional nitrogen fortification (at 125%). This approach provided a proof of concept to bolster the rice-wheat cropping system's viability and promote both agricultural and ecological benefits. This work offers a valuable roadmap for farmers to adopt ecologically sound practices while optimizing wheat production within the context of the intricate rice-wheat cropping system.