Woody perennials have invaded semiarid grasslands throughout the Southwestern United States. This invasion was coupled with decreased grass cover and increased runoff and soil erosion. Fire, which was a natural force that shaped and maintained the grasslands, is a management tool that may aid in restoring and maintaining grass cover. However, fire also poses the risk of increasing erosion and further soil degradation because protection afforded by vegetation is reduced immediately after the fire. Using a randomized block study design, this study measured vegetation cover, soil potentially mineralizable N, and erosion associated with the first application of prescribed fire on 2 semiarid grasslands. The potential for adverse effects from these fires was great because the fires occurred at the beginning of a drought period. However, the effects of the burn were minor relative to the effects of the drought, which caused the greatest change. Grass cover on the burn plots was nearly equal to grass cover on the controls 1 year after the fire. After 2 growing seasons, grass cover was equal on the control and burn plots. Potentially mineralizable soil N and sediment transport were similar on the control and burned plots during the 2 years following the fire. Thus, prescribed fire for reducing the cover of woody perennials may not increase the risk of site degradation over that caused by drought and weather fluctuations.