A field experiment was conducted to determine the effect of crop residue incorporation @ 5 tons wheat straw ha-1 along with N starter dose (0, 30kg N ha-1, 60kg N ha-1 and 90kg N ha-1) on rice (supper basmati) production and soil health at  Soil Salinity Research Institute( SSRI) Farm, Pindi Bhattian, district Hafizabad under saline sodic soils (ECe=5.32 dS m-1, pH=8.52 and SAR=18.38) during 2009 .Treatments were arranged using randomized complete block design (RCBD) with three replications. The crop was harvested at maturity, data on tillering, plant height, spike length, number of grains spike-1, 1000- grain weight, straw and paddy yields were recorded. Na, K, Ca and N concentration in grain and straw were estimated using atomic absorption spectroscopy. Tillering, number of grains spike-1, 1000- grain weight and paddy yield significantly (P≤ 0.05) increased by different levels of doses.  Maximum plant height (135.66 cm) and numbers of grains spike-1 (140.33) , spike length (24.66 cm), number of tillers/ plant (40.33) and 1000-grain weight (23 g) were recorded at the application of 5 tons wheat straw ha-1 along with 90 kg N ha-1. Grain yield was the maximum (3.32 t ha-1) at the application of 5 tons wheat straw ha-1 along with 90 kg N ha-1 and 26% more than control treatment. Positive correlations (r= 0.85) and (r=0.96) between calcium and Potassium contents in grain and grain yield of rice. However, negative correlation (-0.92) between Na contents in grain and paddy yield was found. It indicated presence of significantly higher Ca and K contents in grain receiving wheat straw application combined with N starter dose. Its application helped plants to attain more Ca and K to avoid sodium uptake which has been an added advantage to alleviate salinity/sodicity. Economical analysis showed maximum value cost ratio (5.45:1) with the application of 5 tons wheat straw ha-1 along with 90 kg N ha-1.