The dominant agricultural system in India is the rice-wheat system, and the problems posed by climate change and declining soil health are endangering the system's sustainability. High yields from the irrigated rice-wheat system have resulted in a substantial amount of wasted food. In northwest India, burning rice straw is a frequent practice that results in significant air pollution that is harmful to human health and nutritional losses. Crop residue management improvements should help achieve sustainable productivity, enable farmers to minimize nutrient and water inputs, and lower the risk associated with climate change-all of which will help prevent straw burning. The rice-wheat system's nutrition management will benefit from the prudent application of crop residues, which contain substantial amounts of plant nutrients. Long-term research on residue recycling has shown improvements in the soil's chemical, biological, and physical health. Another viable approach to managing crop residues is to use some of the excess residues to make biochar, which can be added to the soil to enhance its health, maximize its ability to use nutrients, and reduce air pollution. Mushroom cultivation may convert non-edible crop leftovers into a nutritious food source, surface mulch can suppress weed growth and retain soil moisture, and compost and biofuel can all be made from these materials. The decomposition of residues considerably boosts the soil's organic carbon and nitrogen levels. This review looks at the residues that can form in a rice-wheat farming system and how those residues can be effectively managed.