ContextTraditional critical nitrogen (N) dilution curve (CNDC) construction for N nutrition index (NNI) determination has limitations for in-season crop N diagnosis and recommendation under diverse on-farm conditions. ObjectivesThis study was conducted to (i) develop a new rice (Oryza sativa L.) critical N concentration (Nc) determination approach using vegetation index-based CNDCs; and (ii) develop an N recommendation strategy with this new Nc determination approach and evaluate its reliability and practicality. MethodsFive years of plot and on-farm experiments involving three japonica rice varieties were conducted at fourteen sites in Qixing Farm, Northeast China. Two machine learning (ML) methods, random forest (RF) and extended gradient boosting (XGBoost) regression, were used to fuse multi-source data including genotype, environment, management, growth stage, normalized difference vegetation index (NDVI) and normalized difference red edge (NDRE) from portable active canopy sensor RapidSCAN. The CNDC was established using NDVI and NDRE instead of aboveground biomass (AGB) measured by destructive sampling. A new in-season N diagnosis and recommendation strategy was further developed using direct and indirect NNI prediction using multi-source data fusion and ML models. ResultsThe new CNDC based on NDVI or NDRE explained 94−96 % of Nc variability in the evaluation dataset when it was coupled with environmental and agronomic factors using ML models. The ML-based PNC and NNI prediction models explained 85 % and 21–36 % more variability over simple regression models using NDVI or NDRE in the evaluation dataset, respectively. The new in-season N diagnosis strategy using the NDVI and NDRE-based CNDCs and plant N concentration (PNC) predicted with RF model and multi-source data fusion performed slightly better than direct NNI prediction, explaining 7 % more of NNI variability and achieving 89 % of the areal agreement for N diagnosis across all evaluation experiments. Integrating this new N management strategy into the precision rice management system (as ML_PRM) increased yield, N use efficiency (NUE) and economic benefits over farmer’s practice (FP) by 7–15 %, 11–71 % and 4–16 % (161–596 $ ha−1), respectively, and increased NUE by 11–26 % and economic benefits by 8–97 $ ha−1 than regional optimum rice management (RORM) under rice N surplus status under on-farm conditions. ConclusionsIn-season rice N status diagnosis can be improved using NDVI- and NDRE-based CNDC and PNC predicted by ML modeling with multi-source data fusion. ImplicationsThe active canopy sensor- and ML-based in-season N diagnosis and management strategy is more practical for applications under diverse on-farm conditions and has the potential to improve rice yield and ecological and economic benefits.