Field experiments were carried out to study the effect of different levels of nitrogen (N), phosphorus (P) and potassium (K) fertilizer with and without lime as well as to evaluate relative efficacy of different organic and industrial wastes after balancing with chemical fertilizers (CF) along with soil amendments on the growth, yield and quality of sabai grass and peanut, grown under intercropping system with 1:2 ratio (two rows of peanut after every row of sabai grass) in rainfed acid lateritic upland. In the first experiment, three levels of CF viz., 0:0:0 (F0), 50:25:25 (F1) and 100:50:50 (F2) kg ha-1 NPK alone and in combination with farmyard manure (FYM) (50% of N from F1 and F2 was supplemented by FYM) were assessed with and without lime application @ 2 t ha-1. Among different nutrient levels tested, 50 kg N, 25 kg P and 25 kg K ha-1 through CF alone or in combination with FYM was found to be optimum for maximum dry matter production of sabai grass and pod yield of peanut. Among three organic sources tested viz., FYM, water hyacinth (WH) and paper factory sludge (PFS) in combination with CF maintaining a uniform NPK level of 50 kg N, 25 kg P and 25 kg K ha-1 along with or without lime @ 2 t ha-1 or rice husk ash (RHA) @ 5 t ha-1. PFS-based integrated plant nutrient management (IPNM) system recorded higher grass and pod yield to the extent of 4% and 10% (average of sabai grass and peanut) against the FYM and WH based treatments respectively. The quantity and proportion of NPK coupled with minor elements available from nutrient sources available at different stages of crop growth were mainly responsible for difference among nutrient sources. The nutritional quality and nutrient released pattern of different organic manures besides their quantity applied proved to be considerably important. The IPNM system comprising FYM or WH or PFS and CF in conjunction with soil amendments increased the grass and pod yield to the extent of 37.1% (average of sabai grass and peanut) over sole application of CF. When quality of the crops were concerned IPNM system produced 31.5% higher cellulose in sabai grass and 17.3% higher oil content in peanut over CF alone. Lime and RHA, in similar combination, had almost a comparable effect in improving soil properties like bulk density, maximum water holding capacity, pH, soil organic matter, available N, P and K content, bacterial population, soil enzyme activity, N accumulation in nodules, N fixing and P solubilizing power of the rhizosphere soils of sabai grass and peanut. Experiment conducted in the fallow upland of farmer’s field revealed that sabai grass-peanut intercropping system with IPNM system recorded 7.73 times higher sabai grass equivalent yield over traditional sole sabai grass yield.