Abstract: Treated distillery effluent (TDE) generated through biomethanated distillery effluent was applied to arable land for augmenting agricultural production. The TDE contains considerable amount of organic matter and salt besides its high plant nutrients content. With this background, an attempt was made. Field experiments were conducted to study the long term effect of TDE and inorganic fertilizers on soil properties and yield of sugarcane in sandy loam soil during 2010-2011 and 2011-2012. The main plot treatments viz., TDE was applied at the rate of 1.25, 2.5, 3.75 and 5.0 lakh litres ha-1 for treatments were compared with control and the sub-plots viz., N, NP, NK, PK, NPK for fertilizer treatments were compared with control (no fertilizer). The results revealed that the application of TDE @ 5.0 lakh liters per ha had significantly increased the microbial population and enzymatic activities and this will indirectly improve the chemical and physical properties.