Enhancing the productivity of forage crops while maintaining soil health remains a critical objective in sustainable agriculture. Excessive application of inorganic nitrogen (N) fertilizers, particularly urea, has contributed to soil degradation and environmental concerns, prompting the need for biologically sustainable alternatives. In this study, the effects of substituting urea with bioorganic fertilizer on soil quality and forage yield in an intercropping system of Pennisetum purpureum and Macroptilium atropurpureum were investigated. A randomized block design (RBD) was employed with six substitution treatments: no fertilizer (T), 0% substitution (S0), and 25% (S1), 50% (S2), 75% (S3), and 100% (S4) substitution of urea-N with bioorganic fertilizer. Each treatment was replicated four times, resulting in 24 experimental plots. Parameters evaluated included soil properties, populations of nitrogen-fixing bacteria (NFB) and phosphorus-solubilizing bacteria (PSB), and growth and biomass characteristics of the forage association. Substitution treatments significantly improved soil fertility indices. The highest soil organic carbon (SOC) (3.23%) was observed in S3, while total N content (Total N) in S2, S3, and S4 exceeded that of T and S0. Available phosphorus (P) was greatest in S3 and S4, and the highest cation exchange capacity (CEC) (24.08 me 100 g-1) was recorded in S4. The S2 and S3 treatments yielded the highest leaf dry weights (1.55 and 1.49 kg plot-1, respectively), stem dry weights (1.84 and 1.70 kg plot-1), and total dry forage weight (3.38 and 3.19 kg plot-1). Leaf-to-stem ratios and leaf areas in S2 and S3 were comparable to S0 and significantly greater than T. The lowest leaf area-to-total forage ratios (14.39 and 15.05 m² kg-1) were also observed in these treatments. It was demonstrated that 50% and 75% substitution levels of urea-N with bioorganic fertilizer not only enhanced soil quality parameters but also significantly increased forage productivity compared to exclusive urea application. These findings underscore the potential of bioorganic fertilizer as a sustainable alternative to inorganic N sources, contributing to improved soil health, higher forage yields, and more resilient agroecosystems.