Transgenic Bt cotton hybrids, in India, now constitute more than 90% of the cotton area. Conservation tillage systems such as reduced tillage (RT) improve soil health and crop productivity. Field experiments were conducted to study the response of Bt cotton hybrids to the tillage methods in a split plot design for three years (2005-2006 to 2007-2008) with tillage practices as main plots (conventional tillage {CT}, RT with two inter-row cultivations {RT(1)} and RT with no inter-row cultivation {RT(2)}). In the sub-plot, in situ green manure (GM) was included along with 100 (GM + N(100)), 80 (GM + N(80)) and 60 kg N ha(-1) (GM + N(60)) and were compared to N alone (N(100)). Growth, yield and fibre quality of Bt transgenic cotton hybrid (RCH-2 Bt) were monitored during the study. In all seasons, weed density and biomass were significantly lower in the RT treatments than in the CT treatments. Taller plants with more main stem nodes were produced on the RT plots (63.6-75.8 cm) than on the CT plots (58.1-70.2 cm). Thus, plants of RT treatment retained more bolls (60.8-62.0 m(-2)) than those of the CT treatment (52.4 m(-2)). Averaged over seasons, RT treatment had seed cotton yield (1717-1740 kg ha(-1)) significantly higher than the CT treatment (1489 kg ha(-1)). The treatments N(100), GM + N(100) and GM + N(80) (1687-1734 kg ha(-1)) did not differ and were significantly better than the GM + N(60) (1303 kg ha(-1)). Tillage x GM interaction was significant in two of three years and data combined over years. The RT plots with GM had significantly greater yield than the CT plots. Compared to the CT treatment, the RT plots had significantly greater proportion of water stable aggregates (48.6% vs. 54.4-56.0%) and mean weight diameter (0.47 mm vs. 0.49-0.51 mm). The GM plots had significantly higher WSA and MWD than those without. Further, soil moisture content was greater in the GM mulched plots up to 0.60 m depth compared to without GM treatment (CT + N(100)). Favourable soil physical properties may have contributed to improved seed cotton yield in the RT treatments with GM than in the CT treatment. Fibre quality was not affected by either the tillage systems or GM. This study indicates that Bt transgenic cotton can be grown under RT systems with an in situ legume GM. (C) 2011 Elsevier B.V. All rights reserved.