Straw mulching farming is currently an effective dry farming technique for improving arid soil environments. Straw mulching technology can increase the infiltration capacity of soil water and improve crop yield and water use efficiency. In this study, the aim is to improve the soil water holding capacity, water retaining capacity, and comprehensive water use efficiency of crops in dry farmland. First, the response surface model is used to study and analyse the optimal parameters of straw returning and its mulching technology, and then, the crop yield, water consumption, and comprehensive water use efficiency of spring corn under different mulching conditions during 2017-2019 are studied. The test results show that the optimized parameters obtained by the response surface model are as follows: film thickness is 0.03 mm, straw returning amount is 4500 kg/hm2, straw particle size is 5 mm, and straw returning depth is 25 mm. At this time, the maximum soil water storage can reach 404.50 mm. The results of the straw mulching test show that under 4500 kg/hm2 mulching, the soil has more water storage, higher soil water content, and a simultaneous increase in water consumption, which is conducive to the efficient use of limited precipitation by crops. The field experiment for three years shows that 4500 kg/hm2 straw (wheat) mulching in the dry farming area of southern Ningxia can better store water and protect soil moisture, promote the virtuous cycle of farmland soil water, and show outstanding performance in improving corn yield and water use efficiency, which can be popularized and implemented in spring corn production in this area.