The soils of Ethiopia have been experiencing depletion of essential nutrients and a decrease in organic matter, resulting in a significant decline in agricultural output across the country. This research was, therefore, conducted to evaluate the “effects of integrated soil fertility management on bread wheat (Triticum aestivum) yield and soil properties in Lasta district, Ethiopia”. The trial was conducted during the 2023–2024 cropping season on a farmer's field based on four levels of nitrogen (0, 50, 75, and 100% of recommended N) and three levels of vermicompost (VC) (0, 50, and 100%) in mineral N equivalence with a factorial arrangement using a randomized complete block design (RCBD) and replicate three times. The variety was Sekota-1. Disturbed and undisturbed soil samples were collected before and after treatment application. The collected data were analyzed using R software, and the mean separation was performed by the Duncan multiple range test (DMRT) at the 5% probability level. The results indicated that the higher total N (0.14±0.01%), and available phosphorus (Av.P) (22.77±0.72) were recorded from combined application of 100% RN with 100% VC, the highest organic carbon (1.79±0.01%) and CEC (36.8±1.0 cmol+/kg) of the soil was recorded on integrated N and VC application, whereas the lowest total N, Av.P, OC and CEC was recorded from the control. Both the main and interaction effects of N and VC significantly (P < 0.05) affected wheat yield and related parameters, including the number of tillers per square meter (T/m2 ), plant height (PH), grain yield (GY), straw yield (SY), and harvest index (HI). The maximum grain yields (GY) (3955.33±49.22 kg ha-1 ) and biomass yields (BY) (9.30±0.1 t ha-1 ) were recorded from the 100% N and 100%VC, whereas the lowest was recorded from the control (no fertilizers). The agronomic use efficiency (AE) partial factor productivity (PFP) and physiological efficiency (PE) of wheat was decrease as the rate of N fertilizer increases. According to the partial budget analysis, the highest net profit (290088.91 ETB) was achieved when applying the full recommended dose of N along with 100% VC with N equivalence, resulting in a respective marginal rate of return (MRR) of 1491.24%. The combined application of mineral N and VC improved the overall soil properties and yield and yield- related traits of wheat. Based on the wheat yield, soil improvement, and economic return, farmers should apply an integrated 100% RN with 100% VC as the N equivalent. Further research should be conducted across different agro ecologies, soil types and years, and on permanent plots to validate the efficacy of this integrated approach and understand its residual effect on soil properties and yield improvement.