Pearlmillet (Pennisetum glaucum L.) ? mustard (Brassica juncea L.) is an important cropping system of limited water and marginal land areas grown under improper crop establishment and imbalanced fertilization. Conservation tillage with integrated nutrient management (INM) has potential to improve productivity, maintain soil health and economic sustainability. In present study the response of different tillage and INM on yield, production efficiency, carbon sustainability index (CSI) and economics of pearlmillet and mustard grown during 2005-2006 and 2006-2007 at IARI, New Delhi(India) was evaluated. During all the season?s ridge-furrow sowing resulted considerable improvement in growth and yield of pearlmillet and mustard. Pearlmillet and mustard produced higher yield (2.62 and 1.21 t ha-1), pearlmillet equivalent yield (PEY) (6.52 t ha-1) and production efficiency (31.04 kg ha-1 day-1) when sown in ridge-furrow. Application of 30 kg N and 20 kg P2O5ha-1 along with FYM @ 6 t ha-1 recorded higher yield (2.75 and 1.31 t ha-1) of pearlmillet and mustard, respectively as their residual effect. However, in mustard application of 60 kg N and 40 kg P2O5 ha-1 resulted highest yield (1.30 t ha-1), PEY (6.66 t ha-1) and production efficiency (31.74 kg ha-1 day-1). Net returns and CSI were highest (US $572.4 & 21.92 and 603.4 & 20.02 ha-1) in ridge and furrow and preceding application of 30 kg N and 20 kg P2O5 ha-1 along with FYM @ 6 t ha-1, respectively. In mustard CSI was highest in control (21.84) and net returns (US $ 571.7 ha-1) were highest with highest nutrient level. This study indicates that pearlmillet and mustard can be grown under ridge furrow sowing with INM for sustaining soil health and higher farm profitability.