The effects of five levels of nitrogen (N) fertiliser on pasture yield and composition and soil chemical characteristics of Rhodes grass (Cholris gayana) cv. Pasture under grazing and cutting in a subtropical environment of 800 mm annual rainfall were studied over 6 years. Pasture received annual basal dressings of superphosphate (250 kg/ha) and potassium chloride (125 kg/ha for plots, 125 kg/ha . alternate year for grazed paddocks). Urea was applied in 3 equal dressings in September, December, and February, at rates equal to 0, 150, 300, 450, and 600 kg N/ha. year. Stocking rate was 2 Holstein-Friesian milking cows/ha throughout the year, and separate areas of grazing oats (0.4 ha/cow), cracked grain (0.8 t/cow.year), and hay or silage were used to supplement pasture. Under both cutting and grazing, pasture dry matter (DM) yield increased linearly with applied N to about 300 kg N/ha. year, with little further increase at higher levels. Under grazing there was evidence of a decrease in yield at 600 kg N/ha.year, due to total death of the pasture following frosting in winter and the need for regeneration from seedlings in spring; this regeneration was slowed by the large amount of surface litter. Grass N contents decreased and phosphorus and potassium contents decreased with increasing levels of applied N. All 3 nutrients increased from year 1 to 6. Leaf content of grazed pasture was highest during spring (>30% DM) and declined through to autumn (<20% DM), with no consistent effect of N level. Leaf content was consistently higher under cutting (>50%) but was not altered by level of applied N. Soil nitrate-N levels increased (P<0.05) with level of applied N, from 4 to 42 mg/L at 0 and 600 kg N/ha. year, respectively. After 6 years of fertilisation at 300 and 450 N/ha.year, nitrate-N levels were similar to those for 600 kg N/ha.year. Soil pH decreased (P<0.05) with applied N, by 0.15 and 0.28 units annually for 150 and 600 kg N/ha.year, respectively. We conclude that in this environment large responses in pasture growth occur under both cutting and grazing to levels of applied N to about 300 kg N/ha.year, with little response beyond this level.