Different fertilization methods were tested to improve degraded paddy soil fertility in a red earth region. After a 3-year experiment, all fertilization measures significantly increased soil fertility, with the best results seen in combining inorganic fertilizers with organic manure. Soil organic matter content increased by 14.0%, available phosphorus by 39.0 mg·kg-1, and available potassium to a medium level. Soil microbes also increased in number and activity. The combined application of chemical fertilizers and organic manure improved rice grain yield and fertilizer use efficiency. The most effective method for improving degraded paddy soil fertility was found to be using rice-specific fertilizer along with organic manure.