Yellow gypsum (YG), a synthetic product from Linz-Donawitz slag containing high iron (Fe) (5.41%), zinc (Zn) (0.37%) and silicon (Si) (3.41%) can be used as a source of these nutrients along with calcium (Ca) and sulphur (S) for groundnut production. Three field experiments were conducted to know the effect of different rates (500 and 625 kg YG ha−1) and time of application (basal alone and basal + split) of YG on growth, yield and economic returns of groundnut, and micronutrient and Si availability and their uptake in comparison with basal application of 500 kg natural gypsum (NG) ha−1. Basal alone and basal + split application of YG significantly increased the growth, yield and economic returns of groundnut. Further, it increased the soil pH, availability of micronutrients, Si and their uptake by haulm and kernel of groundnut over NG. Irrespective of the location, YG application recorded higher plant available nutrient (PAN) coefficient of micronutrients, while NG application recorded higher PAN recovery coefficient of Si. Basal + split application of YG resulted in better growth and yield of groundnut than basal application of YG. In conclusion, YG can be a potential alternative for NG as a source of Fe, Zn and Si along with Ca and S for groundnut production.