Earthworms are playing a pivotal role in agricultural soils as their feed, burrow and cast in a way that affects soil structure, nutrient availability, microbial processes and water relations. They are also land management sensitive and can be useful biological indicators of soil condition. In the present study, the earthworm ecology in soybean cultivated black soil of the Sagar district, Madhya Pradesh in India was evaluated with emphasis on impact on earthworms caused by conventional chemical cultivation practices and integrated nutrient management (INM) wherein vermi-composting along with chemical fertilizer was used. The experiment was laid out in a controlled pot at three sites namely, Khurai, Patqui and Rehli having with 5 pots of each treatment. The physico-chemical properties of soil and earthworm-cast, soybean growth and yield, and earthworm species composition, ecological categories, density and biomass, were evaluated. A total of eight species of earthworms (representative of three ecological groups) were observed. In the experimental INM treatment, all 8 species were supported while the conventional treatment supported 7 species. The mean earthworm density, raised from 45.0 individuals m−2 with conventional management to 82.7 individuals m−2 with INM, and biomass from 21.1 to 42.5 g m−2 with INM management. Simpson diversity, evenness and Shannon diversity was increased from 0.76 to 0.84, 0.82 to 0.93 and 1.60 to 1.93 respectively. INM also increased soil moisture, reduced bulk density and available N, P, K, S and micronutrients significantly and organic carbon from 0.52 to 0.78%. The enrichment ratio ranged from 1.72 (for organic carbon) to 1.41 (available nitrogen), 1.78 (available phosphorus) and 1.45 (available potassium) in the earthworm casts when compared to the surrounding soil. Soybean grain yield was improved from 14.2 to 21.8 q ha-1, with significant improvement in pods per plant, seed yield per plant and biological yield. Organic C, as well as soil nutrient and grain production had highly positive correlation with earthworm biomass and density. Results indicate that INM improves simultaneously biological, edaphic and agronomic aspects of the soybean agro-ecosystem and it can be used as practical bio-indicators of soil health for central Indian black clay soils.