BACKGROUND: Silver grass (Miscanthus sinensis) No. 1 was developed for production of bio-ethanol, and for the purpose the silver grass growing sector was established in Geumgang basin, Iksan, Jeonbuk, in 2011. However, the other application potentials except for using as the bio-energy resources should be considered because of the drop in international oil prices. Therefore, there is the necessity of a scientific basis to use the silver grass instead of rice straw as the organic matter source that is used for improvement of soil quality in the plastic film house. METHODS AND RESULTS: The silver grass was applied at 5, 10, 15 and 20 Mg/ha and tilled before the watermelon was planted in the plastic film-house. The control plot was treated with 10 Mg/ha with rice straw, and watermelons have been cultivated for 3 years(2017~2019). Soil aggregation, soil chemistry, and the growth characteristics were investigated, when the watermelon was harvested every year. Soil aggregation levels at the 2nd and 3rd year of watermelon harvest were similar from the plot applied with the silver grass at 5 Mg/ha and the control plot, and increased in the silver grass treated plots with more than 10 Mg/ha. However, there was no statistically significant difference between the plots. The nitrogen mineralization of silver grass in the control plot tended to be similar to the 5 Mg/ha plot, but the silver grass treated plots with over 10 Mg/ha showed low nitrogen mineralization. Soil EC on harvest stage was proportional to the applied mass of the silver grass, but pH was in inverse with the applied mass. Soil organic matter content, available phosphate, and exchangeable cations increased with the continued use of silver grass. Watermelon weight found to be the best on more than 15 Mg/ha of silver grass, and the sugar content was highest when 10 Mg/ha was treated. CONCLUSION: The use of the silver grass at 10 Mg/ha annually as the organic source was effective in replacing rice straw while growing fruits and vegetables on the plastic film house.