Temperate pastures are often managed with P fertilizers and N 2 -fixing legumes to maintain and increase pasture productivity which may lead to greater nitrous oxide (N 2 O) emissions and reduced methane (CH 4 ) uptake. However, the diel and interdaily variation in N 2 O and CH 4 flux in pastures is poorly understood, especially in relation to key environmental drivers. We investigated the effect of pasture productivity, rainfall, and changing soil moisture and temperature upon short-term soil N 2 O and CH 4 flux dynamics during spring in sheep grazed pasture systems in southeastern Australia. N 2 O and CH 4 flux was measured continuously in a High P (23 kg P ha −1 yr −1 ) and No P pasture treatment and in a sheep camp area in a Low P (4 kg P ha −1 yr −1 ) pasture for a four week period in spring 2005 using an automated trace gas system. Although pasture productivity was three-fold greater in the High P than No P treatment, mean CH 4 uptake was similar (−6.3±SE 0.3 to −8.6±0.4 μg C m −2 hr −1 ) as were mean N 2 O emissions (6.5 to 7.9±0.8 μg N m −2 hr −1 ), although N 2 O flux in the No P pasture did not respond to changing soil water conditions. N 2 O emissions were greatest in the Low P sheep camp (12.4 μg±1.1 N m −2 hr −1 ) where there were also net CH 4 emissions of 5.2±0.5 μg C m −2 hr −1 . There were significant, but weak, relationships between soil water and N 2 O emissions, but not between soil water and CH 4 flux. The diel temperature cycle strongly influenced CH 4 and N 2 O emissions, but this was often masked by the confounding covariate effects of changing soil water content. There were no consistently significant differences in soil mineral N or gross N transformation rates, however, measurements of substrate induced respiration (SIR) indicated that soil microbial processes in the highly productive pasture are more N limited than P limited after >20 years of P fertilizer addition. Increased productivity, through P fertilizer and legume management, did not significantly increase N 2 O emissions, or reduce CH 4 uptake, during this 4 week measurement period, but the lack of an N 2 O response to rainfall in the No P pasture suggests this may be evident over a Plant Soil (longer measurement period. This study also suggests that small compacted and nutrient enriched areas of grazed pastures may contribute greatly to the overall N 2 O and CH 4 trace gas balance.