Vermicomposting, the use of earthworms to decompose organic waste into quality compost, is an important component of sustainable agriculture because it improves soil health and plant performance. This chapter discusses the benefits of vermicomposting approach toward soil health and agricultural productivity. The chapter opens with a consideration of vermicomposting practices including the selection of organic wastes and the decomposition of biological matter by earthworms. The chapter explains the ways in vermicompost improve soil features, addressing soil structure, fertility, and water-holding capacity. Vermicompost improves soil aeration, and aggregation of soil particles, which promotes root development and less potential for erosion. Vermicompost improves the availability of important macronutrients including nitrogen, phosphorus, and potassium, and improves water-holding capacity of soils, which can be particularly beneficial in drought conditions. In terms of plant performance, vermicomposting has demonstrated to improve seed germination, rooting structure, and overall plant health and yield. Crops grown in vermicompost soils also frequently demonstrate greater resistance to disease and other stressors. The chapter includes illustrative case studies in terms of the valuable functions of vermicomposting around the world and in different farming applications, with a focus on demonstrating the versatility and capacity of vermicomposting. The chapter also considers the challenge of scaling up vermicomposting and optimizing processes associated with composting earthworms. The chapter concludes by reiterating the constructive agronomic and ecological aspects of vermicomposting with regard to agricultural sustainability through soil health, crop productivity, and involvement with ecological sustainability.