Phosphorus and potassium are essential macronutrients, and potassium dihydrogen phosphate, a compound containing both, plays a vital role in plant growth and reproduction. However, its rapid leaching poses significant environmental concerns, lessening its practical utility. To overcome this issue, a biodegradable hydrogel based on amla was synthesized through graft polymerization and evaluated as a water-retaining material for agricultural applications, specifically for the controlled release of fertilizers. The synthesized hydrogel was characterized using FTIR, SEM, XRD, and TGA. Its swelling properties, water retention capacity, porosity, and density were also examined. The biodegradable nature of the synthesized hydrogel was confirmed via soil burial and composting techniques, with FTIR used to validate the degradation. The hydrogel degraded almost entirely within 64 days in compost soil and 72 days in burial soil. Finally, potassium dihydrogen phosphate release studies were conducted, and the data were analyzed using Fick’s law of diffusion and various kinetic models (zero order, first order, Higuchi, and Korsemers Peppas). The release pattern was measured via UV spectrophotometry over 45,000 min, demonstrating controlled nutrient delivery. These findings suggested that the synthesized hydrogel matrix has strong potential as an effective water retention system and for regulated nutrient release.