Soil multifunctionality (SMF) encompasses key soil functions, such as organic matter transformation, nutrient cycling, water storage, carbon sequestration, and biodiversity support for resilient agroecosystems. These vital processes promote soil structuration that supports nutrient supply, primary production, climate regulation, erosion control, and water filtration capacities. However, their success depends on the strategic integration of organic mulch and compost within holistic, context-specific farming systems. This review, therefore, synthesizes the current scientific understanding of the roles of organic mulch and compost, with a focus on soil multifunctionality. This is because soil functions still face many challenges stemming from human activities such as deforestation, overcultivation, and the intensive use of external farm inputs. These changes place mounting stress on soil ecosystems. By adopting these strategies, stakeholders can strengthen soil multifunctionality and safeguard the soil for both ecosystems and human well-being. Organic residues have been used repeatedly in sustainable farming, with compost and mulching being the most common practices, and therefore align with the UN Sustainable Development Goals in terms of environmental conservation and protection. Organic mulch, such as crop residues, conserves soil moisture, moderates’ temperature, reduces erosion and promotes microbial activity, thereby improving nutrient availability and soil structure. Compost, derived from decomposed organic materials, enriches soil with essential nutrients, enhances water-holding capacity and supports microbial biodiversity, thereby contributing to long-term soil fertility and carbon sequestration. The integrated use of mulch and compost enhances nutrient availability, increases soil organic carbon and mitigates environmental stressors such as drought and erosion. These practices align with agroecological principles, reducing reliance on chemical inputs and promoting circular economy models. By improving soil aggregation, water infiltration, and microbial necromass carbon buildup, mulch and compost restore degraded lands and enhance crop productivity and yield stability. Despite challenges such as nitrogen immobilization and scalability, their combined application offers a sustainable pathway to address food insecurity and the impacts of climate change. This review underscores the need for context-specific strategies to optimize these practices, highlighting their role in revitalizing soil multifunctionality for resilient agroecosystems.