In the rainfed conditions of the subtropical region, Kharif crops face dry spells and drought due to uneven distribution of rainfall where climate-smart crop like pearl millet can be grown. Nitrogen (N) plays a vital role in growth and productivity of pearl millet; however, nitrogen use efficiency is low as the applied N faces different types of losses. During present time, nano urea is available which is efficiently absorbed by plants and enhances growth and yield of crops. The two foliar sprays of nano-urea were applied at 30 and 45 days after sowing (DAS), corresponding to the active tillering and pre-flowering stages of the crop. Based on the above facts, a field experiment was conducted to evaluate the efficacy of co-application and partial substitution of nano-urea with conventional urea in pearl millet. The study aimed to assess its impact on phyto-productivity, dry matter and nutrient accumulation, yield attributes, grain and stover yield, harvest index and economic returns. The experiment was laid out in a Factorial Randomized Block Design with two factors and three replications. The first factor consisted of three pearl millet varieties: Sulkhaniya bajra, Pusa composite 701 and Pusa composite 383, while the second factor comprised six nutrient levels: N1 (40:20:0), N2 (20:20:0 + 2 foliar sprays of Nano-urea @ 250 mL ha-1), N3 (50:30:15), N4 (25:30:15 + 2 foliar sprays of Nano-urea @ 312 mL ha-1), N5 (62.5:37.5:18.75) and N6 (31.25:37.5:18.75 + 2 foliar sprays of Nano-urea @ 394 mL ha-1). The findings revealed that substituting 50 % of nitrogen with two foliar sprays of nano-urea significantly enhanced nutrient use efficiency and crop performance. Among the different treatments, N6 (31.25:37.5:18.75 + 2 foliar sprays of nano-urea @ 394 mL ha-1) resulted in the highest yield (1802 kg/ha), gross (₹70407) and net returns (₹49962) and benefit-cost ratio (2.44) under rainfed conditions. These results underscore the potential of nano-urea in reducing conventional urea dependency while promoting efficient and sustainable pearl millet cultivation.