In India, the sugar industry is the second largest agro-based sector, producing significant quantities of by-products such as molasses, press mud etc. Distillery waste, once considered an undesirable by-product of the sugar industry, is now being repurposed to support sustainable agriculture practices. Among these by-products, treated distillery effluent (TDE), a type of wastewater, presents a valuable opportunity for reuse in agricultural. TDE can serve both as a source of irrigation water and as a supplier of essential plant nutrients. The positive impact of organic matter on soil fertility and crop productivity are well documented. Therefore, the application of TDE to soil offers dual benefit: it facilitates the safe disposal of industrial waste while simultaneously enhancing agricultural production. To investigate this potential, a field experiment was conducted to assess the residual effect of TDE and bio-compost on the chemical and biological properties of soil, using paddy (Oryza sativa L. variety BPT-5204) as the test crop. The results indicate that the application of TDE at a rate of 1.5 lakh L ha-¹ (M4), in combination with 100 % nitrogen supplied through bio-compost (S4), significantly improved both the soil chemical and biological properties. Therefore, this combination is recommended as a nutrient source for the residual paddy crop.