TWO FIELD Experiments were carried out during summer seasons 2007 and 2008 at the experimental farm of Rice Research & Training Centre, Sakha, Kafrelsheikh, Egypt, to study the effect of organic fertilizers at rates (0,3,6,9 ton /fed) as Compost rice straw and inorganic fertilizer (at rate 0,100,150 kg urea/fed) on rice productivity and soil organic matter (SOM), the experimentaldesign system of layout was randomized complete block with four replications. The highest values of grain and straw yield in both seasons were recorded by the application of 9 tons composted rice straw (CRS) plus 150 kg urea fed-1. but the difference with the grain yield obtained with 6 tons CRS plus 150 kg urea fed-1 was not significant only in the second season. Also, when 6 tons CRS were applied the addition of 100 kg urea fed-1 or 150 kg urea fed-1 had similar effects on yield. There was a slight difference in 1000 grain weight among all treatments. The number of panicle.hill-1 increased significantly as fertilizer level increased from 0 kg N.fed-1 without CRS to 9 tons CRS plus 150 kg urea.fed-1. There was a significantdifference in panicle length at all treatments of CRS added either separated or combined with urea as compared with the control, Panicle length did not increase with fertilizer level although there was a significant treatment effect (application of CRS, in combination with urea or not) compared to the control. The percentage of soil organic matter in soil increased with increasing the amount of CRS either applied alone or with different levels of urea at all levels compared with the control and soil treated with urea alone. Results showed that organic matter had a significant effect on the percentage of soil organic matter and rice grain yield. We can conclude that combination of Composted rice straw at rate 9 ton/fed with 150 kg urea/fed increased grain yield with percent 75.64 and 75.35 % over the control (without compost without urea) in 2007 and 2008 respectively and increased the percentage of soil organic matter which gave 2.41 and 2.23 % compared with the control treatment which recorded 1.40 and 1.4 % in both seasons, respectively.