Background: Local chickens play a vital role in ensuring food security in developing countries due to their adaptability, disease resistance, and tolerance to harsh environments. However, their productive efficiency remains low compared to commercial strains, mainly because of physiological stress and weak hormonal regulation. Recent advances in molecular biology, such as small interfering RNA (siRNA) technology, offer new approaches to improve performance by silencing stress-related genes and enhancing reproductive function. Aims and Objectives: This study aimed to evaluate the physiological and productive responses of local and commercial laying hens under different management and genetic treatments, including the application of siRNA technology and behavioral habituation through mixed rearing. The goal was to reduce stress, enhance egg production, and explore the potential of siRNA in improving local chicken performance. Materials and Methods: The experiment was conducted at the Poultry Research Field, College of Agriculture, University of Anbar, from December 2022 to February 2023. Fifty-four hens (32 local and 22 commercial, 38 weeks old) were randomly divided into six treatments (T1–T6) with three replicates each. Treatments included pure local and commercial controls, siRNA-treated local hens, and various habituation ratios of local to commercial hens (75:25, 50:50, 25:75). Data on egg production rate, egg mass, egg weight, and number of eggs were recorded across three 28-day periods. Statistical analysis was performed using the SAS software under a Completely Randomized Design. Results: Significant differences ( P ≤ 0.05) were observed among treatments. Commercial hens (T2) consistently achieved the highest productivity in all traits, followed by siRNA-treated local hens (T3), which showed marked improvement in egg production and number, particularly during the third period. Habituation treatments (T4 and T6) also exhibited improved performance compared with the local control, indicating behavioral adaptation and reduced stress. The siRNA treatment effectively suppressed corticosterone expression, enhancing reproductive hormone balance and productive efficiency. Conclusion: The study demonstrated that siRNA technology can mitigate stress and improve the productive traits of local laying hens, while behavioral habituation through mixed rearing further enhances adaptability and welfare. Combining genetic silencing and environmental habituation may represent a promising strategy to enhance local poultry productivity and sustainability.