Abstract: Returning straw, as an eco-friendly land consolidation practice, not only significantly enhances soil fertility and promotes accumulation of organic matter, but also effectively reduces demand for chemical nitrogen fertilizers, lowering environmental burden in agricultural production．Within background of land consolidation, studying effects of returning straw and its combination with nitrogen formula fertilization on paddy soil fertility and crop yields is a prerequisite for promoting resource utilization of agricultural wastes and formulating scientific fertilization models．A review of current status of straw resources in China was provided．Effect of returning straw on soil nitrogen cycling, nitrogen fertilizer use efficiency and nitrogen nutritional characteristics of rice were analyzed, and nitrogen fertilizer optimal management techniques under returning straw were discussed．Results showed that returning straw enhanced nitrogen absorption efficiency of crops by increasing content of soil organic matter and nitrogen, and reduced loss of nitrogen fertilizer through precision fertilization technology, thereby reducing risk of non-point source pollution．It provided an important theoretical basis and practical references for application of returning straw in land consolidation and optimization strategies of nitrogen fertilizer management, and sustainable path of agricultural green development．