Abstract: Background and Objective: Intensive cropping systems with chemical fertilizer often lead to non-sustainability in production and also pose a serious threat to soil health. The research evaluated the effects of integrated nutrient management on oil productivity, nitrogen balance and economics of basil to find out the an adequate combination of inorganic and organic nitrogen sources and biofertilizer. Materials and Methods: Field experiments were conducted at ICAR-Indian Institute of Horticultural Research, Bengaluru during Kharif season of 2015 and 2016 with 9 treatments and 3 replications in a randomized block design to find out the effects of integrated nutrient management on oil yield and economy of basil cultivation and the soil was analyzed to determine the nitrogen sheet balance. Results: The treatment T2 applied with FYM (10 t ha–1)+100% Rec. N through FYM+BF recorded the highest value in the main crop (182.04, 123.13 and 152.6 L ha–1) and ratoon (111.96, 56.07 and 84.02 L ha–1) during kharif 2015, 2016 and pooled data, respectively. Also, T2 recorded the maximum gain of available nitrogen in soil (42.4 kg ha–1) in 2015. While, maximum net income of 171,990 and 113,172 Rs. ha–1 recorded with application of NPK (160:80:80 kg ha–1) along with FYM (10 t ha–1) in (T9). Conclusion: It could be concluded that integration of nutrient sources could increase oil yield, nitrogen balance and economic of basil cultivation.