Crop residue management (CRM) through conservation agriculture can improve soil productivity and crop production by preserving soil organic matter (SOM) levels. Two major benefits of surface-residue management are improved organic matter (OM) near the soil surface and boosted nutrient cycling and preservation. Larger microbial biomass and activity near the soil surface act as a pool for nutrients desirable in crop production and enhance structural stability for increased infiltration. In addition to the altered nutrient distribution within the soil profile, changes also occur in the chemical and physical properties of the soil. Improved soil C sequestration through enhanced CRM is a cost-effective option for reducing agriculture's impact on the environment. Ideally, CRM practices should be selected to optimize crop yields with negligible adverse effects on the environment. Crop residues of common agricultural crops are chief resources, not only as sources of nutrients for subsequent crops but also for amended soil, water and air quality. Maintaining and managing crop residues in agriculture can be economically beneficial to many producers and more importantly to society. Improved residue management and reduced tillage practices should be encouraged because of their beneficial role in reducing soil degradation and increasing soil productivity. Thus, farmers have a responsibility in making management decisions that will enable them to optimize crop yields and minimize environmental impacts. Multi-disciplinary and integrated efforts by a wide variety of scientists are required to design the best site-specific systems for CRM practices to enhance agricultural productivity and sustainability while minimizing environmental impacts.