Soil health plays a pivotal role in ensuring sustainable agriculture, particularly in the face of climate change challenges. This field study investigated the potential synergistic effects of biochar and farm yard manure (FYM) applications on soil properties, nutrient availability, cotton growth, and yield in cotton. Our findings highlight the promising impact of biochar and FYM, each applied at a rate of 5 t ha-1, on various aspects of soil and crop performance. Results indicated the substantial reduction in soil temperature, especially in the biochar + FYM treatment (27.2°C) compared to control treatment (37°C). This reduction in soil temperature created a favorable microclimate for cotton plants, mitigated heat stress and fostered healthier growth. Likewise, biochar + FYM combination showed a minor decrease in soil pH (pH 7.7) compared to control treatment (pH 8.1). Furthermore, the application of biochar + FYM significantly increased soil organic carbon (0.89%) and organic matter content (0.97%) as compared to sole application of biochar or FYM. Additionally, macro and micronutrient availability, including nitrogen (N), phosphorus (P), potassium (K), copper (Cu), manganese (Mn), zinc (Zn), and iron (Fe), substantially increased after the application of these amendments, with the biochar + FYM treatment exhibiting the highest values. The positive impact of these amendments extended to cotton plant growth, with increased plant height (175 cm), a greater number of bolls per plant (43), and heavier open boll weight (3.18 g) observed in the biochar + FYM treatment. Moreover, improvements in ginning out turn (GOT), staple length, and fiber uniformity were notable outcomes of biochar and FYM applications, particularly in combination. Fiber fineness and strength remained consistent. In addition to their soil and crop benefits, the application of biochar and FYM led to reduced irrigation requirements and enhanced crop water use efficiency (WUE), promoting more sustainable water management practices in cotton cultivation. This research highlights the potential synergy between biochar and FYM as a promising approach to enhance soil health and mitigate the impacts of climate change in cotton production.