Red soil is characterized by poor physico-chemical properties and low nutrient availability. The present study aimed to examine rich husk ash (RHA) incorporation into red soil at various rates effects on its properties and the growth of cotton seedlings under a plug-seeding in tray experiment. Bulk density was decreased, and water holding capacity and total porosity were increased in red soil with increasing application rate of RHA. The addition of RHA counteracts the acidity of red soil and improves the nutrient availability to plants. The RHA incorporated soils favored the growth of cotton seedlings with improved shoot morphological traits and root architectures. The application rate at a volume ratio of 1:1 of RHA to red soil was found to be optimal for growing cotton seedlings in the present study. The mixture of RHA and red soil at a 1:1 volume ratio plus 2 g L−1 super absorbent polymers exhibited a high nursing seedling efficiency comparable to a commercial growing media under the condition of foliar application of mepiquat chloride at the one-true-leaf stage. RHA can be a promising substitute for peat as growing media for nursing cotton seedlings.