The combined application of straw biochar and nitrogen fertilizer is an increasingly studied strategy to enhance soil fertility and crop yield. Optimizing the biochar-nitrogen interaction could be a choice for increasing nitrogen use efficiency (NUE) and reducing nitrogen loss in dryland agriculture. However, the mechanisms by which it regulates nitrogen allocation and absorption in foxtail millet (Setaria italica) are still limited in terms of mechanical understanding. Based on preliminary experiments, the optimal biochar-nitrogen interaction for soil nutrient absorption was identified. A field experiment was conducted with six treatments in an arid region of northwestern China: N1C1 (N1: 130 kg ha(-1) + C1: 100 kg ha(-1), control group), N2C4 (N2: 195 kg ha(-1) + C4: 250 kg ha(-1)), N3C1 (N3: 260 kg ha(-1) + C1: 100 kg ha(-1)), N3C2 (N3: 260 kg ha(-1) + C2: 150 kg ha(-1)), N3C3 (N3: 260 kg ha(-1) + C3: 200 kg ha(-1)), and N3C4 (N3: 260 kg ha(-1) + C4: 250 kg ha(-1)). The results demonstrated that the biochar-nitrogen ratio significantly influenced topsoil total nitrogen, microbial biomass carbon (SMBC), and microbial biomass nitrogen (SMBN). All biochar-to-nitrogen combinations sharply increased soil total nitrogen by 133.11-151.52% compared to pre-sowing levels, providing a fundamental base for microbial-driven nitrogen transformation. Low nitrogen addition is more conducive to biomass accumulation, with N2C4 significantly increasing by 62.82%. Although a high biochar-to-nitrogen ratio reduced leaf relative chlorophyll content (SPAD) by 5.72-16.18% and net photosynthetic rate (Pn) by 16.09-52.65% at the heading stage, these did not compromise final yield. Importantly, N2C4, N3C1, and N3C4 significantly increased spike N-15 abundance by 71.45%, 13.21%, and 19.43%, respectively. N2C4 grain production increases by 53.77-110.57% in two years and was positively correlated with spike N-15 abundance, reflecting high nitrogen partial factor productivity. In conclusion, a reasonable biochar-nitrogen interaction enhances nitrogen allocation and grain yield by stimulating microbial activity and strengthening soil-plant synergy, the certified strategy effectively supports sustainable dryland agriculture by simultaneously increasing productivity and improving soil health.