Mulching plays an important role in production of agricultural and horticultural crops in the current scenario of declining water table, soil degradation and climate change. The main objectives of mulching are to prevent loss of water by evaporation, prevention of soil erosion, weed control, to reduce fertilizer leaching, to promote soil productivity, to enhance yield and quality of field and fruit crops. So, mulching is useful to save our underground water resource, soil and environment for sustainable crop production. In this review paper, the literature clearly shows pronounced effects of mulching on soil health by improving the soil structure, soil fertility, biological activities, avoid soil degradation in addition to moisture conservation, regulating temperature, encouraging change in favourable micro-climate, check weed growth and ultimately increasing the productivity, quality, profitability and sustainability of crops and cropping systems irrespective of the system/situation.