Rainfall deficits and erratic dry spells pose major challenges in rainfed ecosystem. In-situ moisture conservation practices (MCP) like ridge-furrow methods, improve soil moisture but are inadequate during 2-3 week dry spells at critical crop stages (flowering and maturity), leading to yield loss. Supplemental irrigation (SI) using an ex-situ rainwater harvesting (RWH) pond can mitigate these effects, but optimizing the pond design is challenging due to limited runoff and storage losses. This study aims to design RWH pond for small farm holders with a 1.0 ha area and evaluate its efficient use for SI during intermittent dry spells and critical crop stages. The design volume was estimated using the SCS-CN method based on daily rainfall data (1974-2010) for the northeast monsoon. A pond with a capacity of 487.5 m3, constructed for a 1 ha micro-watershed, was used to observe the runoff for design validation. The harvested runoff can be used as SI for a cultivable area of 0.4 ha, based on the watershed-to-cultivable area ratio. Statistical analysis of observed and estimated runoff data from 2011 to 2023 revealed a strong correlation (r = 0.87), confirming the pond design. Harvested rainwater, applied through micro-irrigation (rain gun) at a depth of 50 mm during moisture stress periods, significantly improved cotton productivity. The combined use of harvested rainwater and MCP increased yield in the range of 3.8 to 25.3%, improved rainwater use efficiency (1.52 to 3.13 kg ha-1 mm-1), and had a higher benefit-cost ratio (1.15 to 2.43) over a 13-year period. This study concludes that integrating in-situ MCP with ex-situ RWH with micro-irrigation significantly improves rainfed crop productivity in vertisols.