China’s crop straw resources are characterized by abundant reserves, diverse types, and widespread distribution. Effectively utilizing these crop straw resources represents a significant challenge in modern agricultural production and is also a crucial technological issue that urgently needs to be addressed. Among various utilization methods, converting straw into fertilizer for use is the primary approach for comprehensive straw utilization. This paper elaborates on three main methods of straw fertilizer utilization—direct return to the field, compost return to the field, and carbonization return to the field—and analyzes their respective advantages and disadvantages. Based on field trial results, it has been found that all three methods—direct return to the field, compost return to the field, and carbonization return to the field—can effectively reduce soil bulk density, increase soil porosity, and enhance soil organic matter content. Furthermore, compost return to the field and carbonization return to the field demonstrate significant effects in pest and disease control, as well as in reducing weed growth, playing a positive role in promoting green agricultural development and facilitating the transition to low-carbon agriculture.