Sufficient nitrogen (N) supply is decisive to achieve high grass seed yields while overfertilization will lead to negative environmental impact. From the literature, estimation of N rates taking into account the crop’s N status and its yield potential, seems promising for attaining high yields and averting adverse environmental impacts. This study aimed at an evaluation of remote sensing to predict final seed yield, N traits of the grass seed crop and the usability of nitrogen nutrition index (NNI) to measure additional N requirement. It included four years’ data and eight N application rates and strategies. Several reflectance measurements were made and used for the calculation of 18 vegetation indices. The predictions were made using partial least square regression and support vector machine. Three different yield responses to N fertilization were noted; one with linear response, one with optimum economic nitrogen (EON) at ~188 kg N ha−1, and one with EON at ~138 kg N ha−1. We conclude that although it is possible to make in-season predictions of NNI, it does not always portray the differences in yield potential; thus, it is challenging to utilize it to optimize N application.