Sustainable agriculture in arid and semi-arid regions critically depends on the interactions between soil physical properties, water dynamics, and mechanized field operations. In this context, soil physical attributes, such as texture, bulk density, aggregate stability, and soil water potential, play a crucial role in determining soil-water-machine interactions. Soil attributes such as texture, bulk density, aggregate stability, and soil water potential govern both water movement and retention, as well as traction efficiency, draft energy, and compaction under mechanized traffic. Deviations from the optimal soil moisture range in sandy or calcareous soils increase wheel slip, energy consumption, and soil structural degradation, resulting in uneven infiltration and reduced water-use efficiency. This review synthesizes recent research on these coupled processes, emphasizing how soil mechanics and hydraulics collectively influence irrigation performance and mechanization energy requirements. The novelty of this study lies in presenting an integrated soil-machine-water conceptual framework that captures the continuous interactions and interdependencies among soil physical state, machine behavior, and water movement. By highlighting these dynamic relationships, this review provides a systems-level perspective on energy and water interactions in dryland agroecosystems, offering a foundation for predicting the environmental implications of mechanized operations under arid conditions. Overall, the review demonstrates that sustainable mechanized agriculture in arid regions requires integrated management of soil physical state, machine operation, and irrigation timing, where maintaining soil moisture within an optimal operational range is the key factor for reducing energy losses, preventing soil compaction, and improving water productivity.