TWO FIELD experiments one on wheat and one on rice succeeding wheat (2009 / 2010 wheat; 2010 rice) were carried out on a clayey soil at Ghazala El-khis on Efficient Productivity Institute farm, Sharkhia-Governorate to study the effect of rice straw residue applied to wheat on yield and nutrient uptake of wheat and also the residual effect of such residues on rice crop which succeeded the wheat crop. Rates were 4.8, 9.5 and 14.3 Mg (mega grams) ha-1, methods were surface application followed by incorporation in the 30 cm top soil, and application in ditches 40 cm deep (tunnels) spaced at 2,3and 4m between each other. Application of straw caused slight decrease in wheat grains and marked decreases in straw yields. Ditch application recorded greater values over surface application. Uptake of N and P by wheat was lower due to rice residue application but for K, it gave higher values over the non-treated and the highest values were recorded at the 3rd rate with ditches treatment of 2m distance. There was a residual effect on yields of rice as well as NPK uptake and protein percent over treatment not receiving rice straw residue in the preceding wheat crop. The ditch method was superior to the broadcast method; and decreased with increasing the spacing between ditches, as well with the decrease in the rate of application. The results also indicated positive effects on bulk density as well as organic matter and NPK contents in soil. Greater values were obtained at the rate of the 14.3 Mg ha -1 with ditches method of 2m distances