Winter wheat production in the extremely arid oasis region of Xinjiang relies heavily on irrigation and fertilization, but conventional high-input management can induce luxury transpiration and non-productive water consumption, limiting the coordinated improvement of grain yield, water use efficiency (WUE), and economic benefits. To identify the threshold at which water-fertilizer inputs shift from efficient use to inefficient water consumption and to define a robust management range, a two-year field experiment was conducted in southern Xinjiang during the 2022-2023 and 2023-2024 growing seasons. Four irrigation levels, corresponding to 60%, 80%, 100%, and 120% of crop evapotranspiration (ETc), and four fertilization levels were established to evaluate the effects of water-fertilizer interactions on canopy development, leaf gas exchange, evapotranspiration, yield, WUE, and economic benefits. Appropriate water and nutrient supply promoted canopy establishment and maintained higher photosynthetic capacity, thereby increasing grain yield, WUE, and net return. However, excessive inputs weakened yield gains and failed to synchronously improve WUE and economic benefits. Linear plateau models revealed clear thresholds in both the crop-stand scale evapotranspiration (ET)-dry matter accumulation (DM) relationship and the leaf-scale transpiration rate (Tr)-net photosynthetic rate (Pn) relationship. The seasonal ET thresholds were 504.59 and 553.87 mm in the two growing seasons, respectively, and the Tr threshold was 4.83 mmol m-2 s-1. Beyond these thresholds, additional water consumption was not effectively converted into photosynthetic assimilation or biomass accumulation, indicating luxury transpiration. Year-specific response surface analysis and TOPSIS evaluation showed that I3F3, namely 100% ETc combined with 210-195-75 kg ha-1 N-P2O5-K2O, together with its adjacent range, sustained high grain yield, WUE, and economic benefits, with I3F3 achieving the best overall performance in both years. The intersection of the two-year high-performance regions further defined a robust interannual feasible range with an irrigation amount of 506.21-545.09 mm and a total fertilizer input of 369.54-628.33 kg ha-1. Overall, maintaining water and fertilizer inputs within the I3F3-adjacent range can reduce non-productive water consumption and luxury transpiration risk while synergistically improving grain yield, WUE, and economic benefits in winter wheat.