Reduced cost of cultivation (30%) and increase in yield (40%) obliged the Saurashatra farmers to adopt Bt. Cotton on mass scale. Saurashtra cotton earns more profit at international market due to good luster, low naps, more wax on fibers surface, very low dye absorption. High evaporative conditions, scarcity of groundwater, and deficient rainfall condition are detrimental to cotton yields. Climatic change is adding another dimension to this complex nexus of soil-water-plant-atmosphere. Adverse environmental conditions coupled with water scarcity intrigued farmers of this region to adopt drip irrigation with mulch in Bt. Cotton for mitigating the impact of climatic aberrations. Determination of actual crop evapotranspiration during crop growing season is highly advantageous for sound irrigation scheduling. So far no study is reported to develop crop coefficient for drip irrigated biodegradable mulch cotton subjected to variable irrigation regimes. An experiment was undertaken consecutively for two years (2013-14 and 2014-15) to address this issue. Diurnal and temporal variation of soil moisture with depth was monitored using soil moisture sensors at irrigation regimes 1.0 IW/ETc and 0.8 IW/ETc. The control treatment was taken as drip with no mulch. Adjusted FAO Kc predict higher value than sensor based Kc values at both irrigation regimes. Sensor based Kc-mid values were lower by 12.99% and 30.04% than the adjusted FAO Kc-mid value at 1.0 IW/ETc and 0.8 IW/ETc respectively. Biodegradable plastic mulch reduced Kc-ini value by 72.26% and 66.54% over control at 1.0 IW/ETc and 0.8 IW/ETc respectively. Overestimated adjusted FAO Kc values caused a loss of 78.13mm and 66.54mm of precious water at 1.0 IW/ETc and 0.8 IW/ETc respectively. This study admonishes blind adoption of published FAO Kc curves, for mulch conditions.