Abstract: The paper aims to study water- keeping effect of water retention agent on cotton yield and the economic impact under the condition of drought. There were 5 treatments in this study, soil water retention agent application rates were 0(CK), 15 (T1), 30 (T2), 45 (T3) and 60 kg/hm² (T4), respectively, each treatment with three replicates were conducted at Cele county of Hotan. The results showed that: (1) soil moisture differences between each treatment and control in soil layer of 0-30 cm were not significant (P＞0.05), each treatment remained between 14.62 to 15.53% in 0-10 cm soil layer, 16.35 to 17.95% in 10-30 cm soil layer; while in 30-40 cm soil layer, differences of soil moisture content between control and each treatment were significant (P＜0.05), soil moisture increased after applying composite soil moisture retention particles, T1, T2, T3 and T4, increased by 6.6%, 7.45%, 7.9% and 7.8%, respectively; (2) comparing to the control (CK), yield increase of T1, T2, T3 and T4 reached different level (P＜0.05), seed cotton yield was up to 2868.90 kg/hm²(T2). By economic analysis, T1, T2, T3 and T4 increased 6600.30, 9649.80, 6937.50 and 6543.45 yuan/hm² compared to the CK, the input-output ratio of 30 kg/hm² (T2) treatment was 16.08. The soil moisture had a tendency to increase by using water retention agent in experimental zone. Cotton yield and economic benefits were highest in the test area with 30 kg/hm² (T2).