This study was to investigate the effects of rice straw incorporation by cutting height on paddy soil fertility. The average residual amount of rice straw by cutting height were showed 1,420 kg $ha^{-1}$, 1,850 kg $ha^{-1}$, and 2,400 kg $ha^{-1}$ for depths of 10 cm, 15 cm, and 20 cm, respectively. For soil physical properties, soil hardness and bulk density were decreased while porosity was increased by rice straw incorporation. But soil organic matter (SOM), available silicate content, and cation exchange capacity (CEC) were significantly decreased when rice straw was removed from the field. These results indicated that the SOM as residual amount of rice straw was influenced by level of cutting height. Milled rice yield was increased by 28% and 32% for cutting heights of 15 cm and 20 cm, compared with that of control, respectively. The number of spikelets per square meter and the percentage of ripeness were increased with increasing incorporation by lower level of cutting height of rice straw. Therefore, incorporation of rice straw practices under cutting method influenced soil improvement and rice yield in paddy field.