On-farm research was conducted at Gouripur sub-district under Mymensingh district of Bangladesh during the boro (mid November-June) season in 2013-14 and 2014-15 to evaluate the performance of non-puddled rice cultivation with and without crop residue retention. The rice var. BRRI dhan28 was transplanted by two tillage practices viz., puddled conventional tillage (CT) and non-puddled strip tillage (ST) and at two levels of mustard residues, i.e., no residue (R₀) and 50% residue (R₅₀). The experiment was designed in a randomized complete block design with four replications. There were no significant yield differences between tillage practices and residue levels in 2013-14. But in the following year, ST yielded 9% more grain compared to CT leading to 22% higher BCR. Retention of 50% residue increased yield by 3% compared to no-residue, which contributed to 10% higher benefit-cost ratio (BCR). The ST combined with 50% residue retention yielded the highest grain yield (5.81 t ha^-1) which contributed to produce the highest BCR (1.06).