Irrigated agriculture in arid and semi-arid regions is a vital contributor to the global food supply; however, these regions endure massive evaporative losses that are compensated by unsustainable freshwater withdrawals. Plastic mulches have been used to curtail evaporation, improve water-use efficiency, and ensure food–water security, but they are non-biodegradable and their disposal is unsustainable. We recently developed superhydrophobic sand (SHS), which comprises sand grains with a nanoscale wax coating that could offer a more sustainable mulching solution. Here, the effects of adding a 1.0 cm-thick layer of SHS mulch on the evapotranspiration and phenotypic responses of tomato (Solanum lycopersicum) plants are studied under normal and reduced irrigation. Under both irrigation regimes, SHS mulching suppressed evaporation and enhanced transpiration by 78% and 17%, respectively relative to the bare soil. Overall, SHS mulching enhanced root xylem vessel diameter, stomatal aperture, stomatal conductance, and chlorophyll content index by 21%, 25%, 28%, and 23%, respectively. Total fruit yields, total dry mass, and harvest index increased in SHS-mulched plants by 33%, 20%, and 16%, respectively than in bare soil. These findings demonstrate the potential of SHS to boost irrigation efficiency in water-limited environments and provide mechanistic insights behind yield enhancement by SHS mulching.