A field experiment was conducted during the rainy season (kharif) of 2017 and 2018 at Agricultural Research Station of the Acharya N.G. Ranga Agricultural University, Ananthapuramu, Andhra Pradesh, to study the effect of integrated rainwater-management practices on soil properties and groundnut (Arachis hypogaea L.) productivity. The experiment was laid out in a randomized block design with 9 rainwater-management practices with 3 replications. Results indicated that, application of shales @ 300 t/ha as surface mulch combined with 2 supplemental irrigations of 10 mm each when dryspell of 10 days occurs after 50% flowering treatment (T7 ) increased the porosity, water holding capacity, infiltration rate by 17.8, 41.2 and 24.6%, respectively, and bulk density was reduced by 5.0% compared to dryland groundnut (T1 ). Similarly, the same treatment (T7 ) enhanced the groundnut pod yield by 39.68% compared to the control (T1). Thus, application of shales @ 300 t/ha as surface mulch combined with 2 supplemental irrigations of 10 mm each when dryspell of 10 days occurs after 50% flowering proved the best integrated rainwater-management practice to improve soil properties and increase the productivity of groundnut under arid and semi-arid regions of Andhra Pradesh.