The present two years study (2010-11 and 2011-12) was conducted at research area of PMAS-Arid Agriculture University Rawalpindi (AAUR) to test various soil additives for soil moisture conservation under different cropping systems, 2) find out an appropriate cropping system for efficient resource utilization and increase production per unit area and 3) compare the profitability of different soil additives and cropping systems. The field experiment was laid out in a Randomized Complete Block Design with split plot arrangements keeping cropping systems in main plots and soil additives in subplots. The cropping systems included summer fallow-wheat, mungbean-wheat, sorghum-wheat, and sorghum + Mungbean–Wheat (Mungbean was intercropped in sorghum). Soil additives i.e. farm yard manure, gypsum, compost and hydrogel (Qemisoyl) were applied in third week of June 2010 @ 25 t ha-1, 2.5 t ha-1, 0.75 t ha-1 and 15 kg ha-1, respectively about two week before the onset of monsoon. During the study period data on soil moisture content, bulk density, crop growth, yield and yield components for all the crops were recorded. Competitive indices, and water use efficiency was also calculated. The data was subjected to Fisher’s Analysis of Variance Technique (ANOVA) using statistical package STATISTIX 8.1. Least Significant Difference (LSD) test was used for comparison of treatment means. Economic analysis was performed using partial budget and dominance analysis techniques. The data revealed that at the time of wheat sowing after fellow or summer grown mungbean/sorghum, hydrogel (Qemisoyl) conserved higher moisture content (16.42%) in the soil profile as compared to control (12.80%). It was followed by compost, FYM and Gypsum. Among cropping systems, Mungbean-Wheat cropping xx system had slightly higher soil moisture content (15.1%) as compared to summer fellow (14.4%). Minimum soil moisture was recorded in Sorghum-Wheat system (13.2%). The moisture content in intercropping system was at par with fallow-wheat system. The values of competitive indices i.e. Land Equivalent Ratio, Relative Crowding Coefficient, and Competitive Ratio indicated sorghum/mungbean-wheat intercropping system as the most competitive and resource efficient system. Actual Yield Loss and Intercropping Advantage indices indicated reduction in yield of crops as compared to sole but it was compensated by (intercropping) production of two crops from same piece of land simultaneously. Sorghum-mungbean intercropping system produced wheat (2424 kg ha-1) at par with other systems implying this system as most productive in terms of total production per unit area per unit time (one year rotation). The partial budget analysis revealed sorghum/mungbean-wheat as most profitable cropping system and Hydrogel as most profitable soil additive. Whereas the hydrogel was most profitable soil additive in all cropping systems except mungbean-wheat system where compost was found most profitable.