To understand the potential/ limitation of rainfed upland rice in a watershed management program through scientific management technique (SMT), a study was undertaken in Nagaria Nala watershed in Nayagarh district of Orissa. Morphometric analysis of the watershed revealed that drainage pattern is affected by structural disturbances; and watershed produces a medium peak flow for a shorter duration. Watershed was treated through various engineering structures such as water harvesting structure, percolation tank, contour bund, open well, diversion weir and loose boulder structures which enhanced soil moisture regime and life saving irrigation facilities. High yielding drought resistant short duration variety Vandana performed well through scientific management techniques in treated watersheds than untreated watershed in terms of grain yield, straw yield and net income. It is found that in treated watershed scientific management is much superior to farmer’s management, both in terms of straw yield, grain yield and net income. Lowest return was obtained from farmer’s management practice in untreated watershed.