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Dhaincha also know as Prickly Sesban, Sesbania Bispinosa, Sesbania Aculeata, Malaimurungai Seeds . Green manuring of rice with dhaincha (Sesbania Bispinos) is widely practiced under irrigated puddle-transplanted conditions. In flood-prone lowlands, the rice is established through direct seeding early in the season and flooding occurs after 1–2 months of crop growth following regular rains. low yields are due to poor crop stands and difficulty in nitrogen management under higher depths of water. The effect of green manuring with dhaincha intercropped with direct-seeded rice vis-à-vis the conventional practice of incorporating pure dhaincha before transplanting was investigated under flood-prone lowland conditions (up to 50–80 cm water depth) at Cuttack, India. Treatment variables studied in different years (1992, 1994 and 1995) were: rice varieties of different plant heights, crop establishment through direct seeding and transplanting, varying length of periods before dhaincha incorporation, and urea N fertilizer levels. Dhaincha accumulated 80–86 kg N ha?1 in pure stand and 58–79 kg N ha?1 when intercropped with direct-seeded rice in alternate rows at 50 days of growth. The growth of rice improved after dhaincha was uprooted manually and buried in situ between the rice rows when water depth was 10–20 cm in the field. The panicle number was lower but the panicle weight was higher with dhaincha green manuring than with recommended level of 40 kg N ha?1 applied as urea. The grain yield was significantly higher with direct seeding than with transplanting due to high water levels (>60 cm) immediately after transplanting. Dhaincha manuring was at par with 40 kg N ha?1 as urea in increasing the yield of direct-seeded and transplanted crops. The highest yield of direct-seeded crop was obtained when 20 kg N ha?1 was applied at sowing and dhaincha was incorporated at 50 days of growth. The results indicate that green manuring of direct-seeded rice with intercropped dhaincha