Field experiments were conducted at DRR farm located at ICRISAT, Patancheru, in sandy clay loam soils during four seasons, Kharif 2008, Rabi 2008-09, Kharif 2009 and Rabi 2009, to investigate plant growth parameters, water-saving potential, plant root characteristics, chemical, biological and microbial properties of the rhizosphere soil, and grain yield of rice (Oryza sativa L.) by comparing the plants grown with system of rice intensification (SRI) methods, with organic fertilization only or organic + inorganic fertilization, compared with currently recommended best management practices (BMP).All of the growth parameters including plant height, effective tillers, panicle length, dry matter, root dry weight, and root volume were found to be significantly higher with the SRI-organic + inorganic treatments over BMP.With SRI-organic fertilization only, growth parameters showed inconsistent results; however, root dry weight and root volume were found to be significantly greater compared to BMP.Grain yield was found significantly higher in the SRI-organic + inorganic treatments (12−23% and 4−35% in the Kharif and Rabi seasons, respectively), while with SRI-organic management only, yield was found higher (4−34%) only in the Rabi seasons compared to BMP. On average, 31% and 37% of irrigation water were saved during Kharif and Rabi seasons, respectively, with both SRI methods of rice cultivation compared to BMP. Further, total nitrogen, %organic carbon, soil dehydrogenase, microbial biomass carbon, and total bacteria, fungi and actinomycetes were found higher in both sets of SRI trials in comparison to BMP. It is concluded that SRI practices create more favorable conditions for beneficial soil microbes to prosper, save irrigation water, and increase grain yield.