Canola crop has the potential for both seeds and grazing. Optimal planting density, time of nitrogen (N) fertilizer application and rates are the major aspects for successful qualitative traits and canola yield formation. In this content, optimization of planting density, N levels and its time of application in dual purpose canola are needed. This study was carried out in RCB design with split pot arrangement having three repeats during winter 2012–2013 and 2013–2014. The study evaluated N levels (120 and 80 kg N ha−1), cutting treatment, N application timings and planting density (20 and 40 plants m−2) effects on qualitative traits and yield of canola. No-cut treatment had 7.02%, 2.46%, and 4.26% higher, glucosinolates, oil, and protein content with 31.3% and 30.5% higher biological and grain yield respectively, compared with grazed canola. Compared with no-cut canola, grazed canola resulted in 7.74% of higher erucic acid. Further, application of N at 120 kg N ha−1 had 8.81%, 5.52%, and 6.06% higher glucosinolates, percent protein, and seed yield, respectively than 80 kg N ha−1. In-addition, the application of N into two splits was most beneficial than the rest application timings. Cutting had 15% reduction in grain yield of canola and fetched additional income of 143.6 USD compared with no-cut. Grazing resulted in a 23% reduction in grain yield while had additional income of 117.7 USD from fodder yield. Conclusively, the application of N in two splits at 120 kg N ha−1 combined with 20 plants m−2 is a promising strategy to achieve good qualitative attributes and canola yield under dual purpose system.