Dairy compost is utilized in agricultural fields to supplement nutrients, yet its role in optimizing nutrient supply and health of semiarid soils is not clear. A greenhouse study was conducted over two months to evaluate soil properties and forage sorghum production under various compost rates. The study had six treatments and four replications. Treatments included compost application rates at 6.7 (C1), 13.5 (C2), 20.2 (C3), 26.9 (C4), and 33.6 Mg ha⁻¹ (C5) and a control (C0). Soil samples were analyzed for soil organic carbon (SOC), potentially mineralizable carbon (PMC), total nitrogen (N), inorganic N, potentially mineralizable N (PMN), available phosphorus (P), potassium (K), calcium (Ca), magnesium (Mg), and sulfur (S). Plant biomass production and biomass C, N, and lignin contents were also estimated. High compost rates improved soil properties significantly (p < 0.05) indicated by increased SOC, N, P, K, Ca, and cation exchange capacity (CEC). Sorghum biomass production did not increase significantly with compost rate, while shoot N content increased at higher rates of compost. A nutrient management plan that integrates dairy compost application has potential to improve soil health and support sustainable forage production in semiarid regions.