The current agronomic model of returning straw litter to soil (straw returning) involves crushing and mixing the straw with soil, which leads to shallow burial and ineffective decomposition of the straw. To address this issue in the cold region of Northeast China, this study proposed a method of burying and composting rice straw in furrows for returning to the field, and developed a matching machinery. Based on long-term experiments of burying straw in soil in spring and autumn, in this study, the operating parameters, postoperative straw decomposition effects, and influence of soil bulk density were analyzed. The results showed that the straw returning rate was inversely proportional to the forward speed and proportional to the furrow opening rotation speed and exhibited an increasing-then-decreasing trend with increasing collecting rotation speed. Taking into account both straw returning rate and operational efficiency, the recommended optimal operating parameters for the machinery unit were a forward speed of 0.4 m s−1, a raking speed of 180 r min−1, and a ditching speed of 420 r min−1. Under the spring model of burying straw in soil, straw treated with the composting agent was more likely to be fully decomposed in a short period, with a maximum total decomposition rate of up to 97.23%. Burying straw in soil effectively reduced soil bulk density, and straw returning in spring was more conducive to improving soil physical properties than straw returning in autumn. The value of this research lies in the integration of agricultural machinery and agronomy, providing insights for the development and design of related equipment, as well as offering a new approach for the effective treatment and utilization of straw in cold regions.