The growing interest in commercial Inland saline aquaculture has taken momentum across the globe due to the available technologies for aquaculture and the abundant resources of saline groundwater. However, the critical problems in inland saline ponds are degraded soil and imbalanced or deficient nutrients. To address these issues, a 75-day experiment was conducted to explore the effects of Paddy Straw Biochar (PSB) as a sediment amendment on sediment quality, water characteristics, growth parameters, and the well-being of Penaeus vannamei reared in inland saline environments. PSB was applied to the nursery ponds at 1 ton/hectare (Treatment, T1) and 2 ton/hectare (Treatment, T2). The findings of water quality parameters showed a significant increase in K+ and Mg++ with a decrease in ammonia-N levels in biochar-applied ponds. Similarly, the addition of biochar to ponds (T2) resulted in improved sediment characteristics with enhanced water holding capacity (24.75%), increased soil organic carbon content (77.94%), pH levels (0.37 units), cation exchange capacity (43.15%), available potassium (16.3%), and lower bulk density (12.61%) compared to ponds subjected to control conditions at the end of the experiment. Over the experiment, improvements in sediment and water quality parameters followed the T2 > T1 > control trend. Growth characteristics showed a significant rise in the percentage of weight gain (12.398 ± 0.12), SGR (11.80 ± 0.01% day-1) and PER (2.39 ± 0.01) with reduced FCR (1.19 ± 0.00) in biochar-treated ponds (T2), followed by T1 and control. The digestive enzyme activity (amylase) and metabolic enzymes like hepatopancreatic alanine aminotransferase (ALT) and muscle ALT activities were significantly higher in shrimps raised in the biochar-applied ponds. On the other hand, the oxidative stress enzyme superoxide dismutase (SOD) in gills, muscles, and hepatopancreas (HP) exhibited lower values, suggesting reduced oxidative stress due to the biochar amendment of the pond sediment. Overall, the study recommends incorporating PSB at a rate of 2 t/ha into nursery pond sediment to enhance water quality, physiological status, and the growth of P. vannamei juveniles. Moreover, this approach improves soil and water characteristics in saline soils, making it an effective culture practice in degraded environments.