<p>Terminal heat stress during reproductive stages is a major constraint to chickpea (<i>Cicer arietinum</i> L.) productivity, especially under late sowing. A two-year field study (2021–22 and 2022–23) was conducted at Punjab Agricultural University, Ludhiana, India, to assess the effects of three sowing dates (1st November, 20th November, and 10th December) and four levels of straw mulch (0, 2, 4, and 6 t ha^− 1) on chickpea growth, physiology, yield, and economics. Sowing on 1st November significantly (<i>p</i> &lt; 0.001) increased seed yield by 27% over 10th December and 10% over 20th November. It also enhanced dry matter accumulation (10–25%), chlorophyll content (20–30%), and nodulation (21–29%), while reducing oxidative stress (lower SOD and POX activity), resulting in improved physiological stability and economic returns. Application of paddy straw mulch at 4 t ha^− 1 significantly (<i>p</i> &lt; 0.05) moderated soil temperature (↓20–22%), improved soil moisture retention (25%) leading to better crop growth and water-use efficiency. Although 6 t ha^− 1 mulch produced similar agronomic effects, 4 t ha^− 1 was more economical.Overall, timely sowing along with 4 t ha^− 1 paddy straw mulch is an effective and economically viable strategy to mitigate terminal heat stress and sustain chickpea productivity. All major treatment effects were statistically significant at <i>p</i> ≤ 0.05 unless stated otherwise.</p> Graphical abstract <p></p>