The present study was undertaken to develop an optimised fertiliser recommendation for a climate-resilient dwarf mutant of red banana (dwarf red banana) and to compare its performance with the locally cultivated tall red banana. Field experiments were conducted during 2021–2022 and 2022–2023 at the Coconut Research Station, Balaramapuram, using a randomised block design (RBD) with 4 NPK (nitrogen, phosphorus and potassium) levels: N1 (200:200:400 g per plant), N2 (150:150:300 g per plant), N3 (250:250:500 g per plant) and N4 (300:300:600 g per plant), replicated 5 times. Across both years, the N4 treatment consistently produced superior vegetative growth, as indicated by a higher number of functional leaves, increased pseudostem girth and maximum dry matter accumulation. Yield attributes including number of hands per bunch, fingers per hand and finger length and girth were also significantly higher in N4. This treatment further recorded significantly greater N, P and K uptake, resulting in significantly higher bunch weight. Economic analysis revealed that N4 achieved the highest gross return, net return and benefit cost ratio. Quality assessment revealed that, at the NPK level of 200:200:400 g per plant, dwarf red banana fruits exhibited significantly higher total soluble solids, reducing sugar and ascorbic acid content compared with those of the tall ordinary red banana. Overall, an NPK dose of 300:300:600 g per plant was identified as optimal for maximising the productivity and profitability of dwarf red banana. The cultivar’s naturally reduced stature, sturdy pseudostem and enhanced tolerance to wind damage highlight its potential as a climate-smart alternative for banana growing regions vulnerable to climate variability.