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Polyethylene mulch is widely used for vegetable production in the United States as a tool to conserve water, control weeds, and produce earlier and cleaner products (i.e., less attached soil). However, the increasing labor costs for mulch removal and disposal after harvest and soil environmental pollution are major concerns. The objective of this study was to assess fruit yield and quality, mulch deterioration, soil microbial activity, and nutrient changes in ‘Stargazer’ watermelon (Citrullus lanatus) grown with degradable plastic mulch. The deterioration rates of degradable mulch were 7%, 37%, 57%, and 92% after 120, 210, 300, and 365 days, respectively, of placing the mulch in the field. However, the extra difference in using degradable mulch was calculated as $58.6/acre (polyethylene $600.9/acre vs. degradable $659.5/acre), including all costs associated with laying and disposing. One year after placing mulch in the field, the nitrate content and total and active fungi numerically increased (P = 0.08) in soils with the degradable mulch compared with polyethylene mulch. However, there were no statistical differences in soil phosphorus, potassium, organic carbon, and total and active bacteria. Extra-large fruit size yield (category >24.0 lb) from the polyethylene mulch treatment was higher than that from degradable mulch, whereas the 18.0- to 24.0-lb category was lower than that with degradable mulch. However, total yield and total soluble solids from both mulches were statistically similar. Considering the complete deterioration (less waste), mulch removal cost (not required), microbial associations (higher fungi abundance and activity), and similar yield and fruit quality of degradable mulch compared with polyethylene, the implementation of degradable mulches in commercial watermelon field practices is promising.