A field experiment was carried out at MARS, Dharwad during kharif and rabi seasons of 2013–14 and 2014–15 to study the effect of mulching practices in maize-based cropping systems. The experiment comprising two main plot treatments like, maize grown on kharif mulch and without mulch in kharif with sub-plot treatment as rabi crops (wheat, safflower, chickpea and sorghum) and sub-sub plot treatments (rabi crops with mulch and rabi crops without mulch). The results of two years showed that maize grown with mulching practices recorded significantly higher grain yield (83.45 q/ha) of maize and yield parameters like test weight (40.83 g), cob length (21.09 cm) and grain weight per plant (172.5 g) as compared to without mulching practice (72.05 q/ha of grain yield). The per cent of grain yield increase with kharif residue mulching practice was to an extent of 15.82 and 19.32%, respectively, over without mulching practices. These were significantly higher WUE (water use effciency) (14.03 kg/ha.mm), gross returns (Rs.109316/ha) and net returns (Rs.74021/ha) as compared to without mulching practices. Mulching in both the seasons recorded significantly higher grain yield and water use efficiency (WUE) of wheat (17.29 q/ha and 23.92 kg/ha.mm), safflower (18.55 q/ha and 26.89 kg/ha.mm), chickpea (18.79 q/ha and 27.05 kg/ha.mm) and sorghum (19.70 q/ha and 26.82 kg/ha.mm) as compared to without mulching practices. Application of kharif mulch to chickpea crop in rabi season recorded significantly higher the total system net returns (109652 Rs./ha) as compared to without mulched treatment. It was on par with the safflower crop with rabi mulch (Rs. 106337/ha).