Poor soil fertility caused mainly by low and declining soil organic carbon is one of the major constraints limiting crop productivity in tropical and subtropical regions of South Africa. We evaluated the effect of macadamia husk compost (MHC) on selected chemical and physical properties of a sandy loam soil in NE South Africa in two successive seasons. The treatments, laid out in randomised, complete block design and replicated four times, were: (i) zero control, (ii) inorganic fertilizer (100:60:60 NPK Kg ha−1), (iii) MHC at 15 t ha−1, and (iv) MHC at 30 t ha−1. Soil bulk density; water holding capacity; soil pH; electrical conductivity (EC); organic carbon; total N; and available P, K, Ca, Mg, Al, Zn, and Cu were determined at 0–15 cm soil depth. Macadamia husk compost application decreased bulk density and increased water holding capacity. MHC and inorganic fertilizer increased soil pH, organic carbon, total N, C:N ratio, available P, exchangeable cations, and micronutrients but the effect was more pronounced under MHC treatments in both seasons. The positive effect of MHC on soil physicochemical properties was associated with an increase in soil organic carbon due to MHC application; hence, MHC may offer a sustainable option of increasing soil productivity, particularly in areas characterised by low SOC.