The lowering of salt content in the field, especially in arid areas, after consecutive application of mulched drip irrigation (MDI) is of vital importance for sustainable cotton plantation. To elucidate the effects of long-term MDI on soil properties and cotton growth, this paper systematically monitored the soil salinity, ion concentrations and the yield of cotton in the field using MDI consecutively for six years in a typical oasis in Xinjiang, China. The results showed that MDI could significantly change salt distribution in the cotton field. During the six years tested, the soil salt content using MDI declined fast at first, and then the decline rate gradually decreased. In the 1st and 2nd year, the average salt content within 0–100 cm soil layer was larger than 20 g kg−1, which belonging to the saline soil. Then the salt content decreased to 10–20 g kg−1 in the 3rd and 4th year, and the cotton field declined to heavily saline soil. After 5 years of MDI, the soil turned to non-salinized. The Cl− and SO42− equivalence ratio (CSER) also decreased with the increase of application years of MDI. Saline-alkaline land developed from chloride-sulphate solonchak (0.2 < CSER < 1) into sulphate solonchak (CSER < 0.2) after 6 years of MDI. The survival rate of the cotton increased from 1.48% (1 year of MDI) to 76.3% (6 years of MDI), and the yield increased from 72.43 kg ha−1 to 4515.48 kg ha−1. When the average CSER, SAR and the soil salinity in 0–140 cm soil layer decreased to 0.60, 0.98 (mol kg−1)0.5 and 6.25 g kg−1, farmers can achieve a balance between income and expenditure. Moreover, when CSER, SAR, and the soil salinity continuously decreased to 0.44, 0.69 (mol kg−1)0.5 and 0.77 g kg−1, the cotton yield will exceed the average production level of cotton in Xinjiang. Under the current irrigation schedule in the oasis irrigation area, the soil salinity and groundwater level after applying MDI could be conducive to cotton growth. However, this situation had also caused a waste of nearly 200 mm of water resources. Therefore, authors suggested that further research on water-saving irrigation systems suitable for different soil conditions should be carried out, and also the differential quota management in production practice should be adopted.