Non-puddled rice cultivation is gaining traction as a sustainable alternative to traditional puddled transplanting, particularly due to its potential to enhance soil health, nutrient use efficiency and mitigate environmental impacts. This review synthesizes recent findings from studies conducted in India and other rice-growing nations, comparing the effects of non-puddled and puddled systems on key soil properties and processes. Evidence suggests that non-puddled rice cultivation generally leads to improved soil physical properties, including increased porosity and reduced bulk density, facilitating better water infiltration and root development. These changes promote beneficial soil biota activity, enhancing nutrient cycling and availability. Consequently, non-puddled systems often exhibit higher nitrogen use efficiency by 15-20 % and phosphorus use efficiency 10-20 % thereby reducing losses and increasing overall nutrient use efficiency which further influenced to reduced fertilizer requirement. Non-puddled rice systems increase water productivity by improving soil structure and water infiltration. This enhances root growth, allowing plants to access more water. Reduced percolation and seepage losses, along with efficient water use by plants, further contribute to higher productivity. Non-puddled systems also facilitate alternate wetting and drying irrigation, reducing water consumption efficiency compared to puddled transplanted rice. Nutrient and water use efficiency, requiring lower fertilizer inputs and water, while achieving comparable or even higher yields compared to puddled rice with respect to soil physical and biological characteristics. Furthermore, the reduced flooding associated with non-puddling significantly lowers methane emissions, a potent greenhouse gas. This review highlights the potential of non-puddled rice cultivation to contribute more sustainable and resilient rice production systems while addressing pressing environmental concerns.