A field experiment was conducted on residual effect of nutrient management on sequential productivity and its economics under lucerne (Medicago sativa L.) – paddy (Oryza sativa L.) sequential cropping during rabi and kharif seasons of 2004-2005 and 2005-2006. An application of 2nd cutting then left for seed production + 50% RD of phosphorus + PSB (T9) significantly increased the yield (fodder and seed) of lucerne over rest of the treatments, being at par with treatment T8 which was at par with treatment T7, during both the years as well as in pooled analysis. The highest grain and straw yield of rice were recorded under treatment combination of T9 to preceding lucerne and 100 per cent recommended dose of fertilizer to rice being at par with treatment combinations T8F3, T7F3 and T6F3 indicating that the treatment combination of T9F3 was adequate for obtaining comparable grain and straw yields, net realization and the highest benefit cost ratio from succeeding rice.