Chinese agriculture needs to become less dependent on fertilizer inputs to enhance sustainability. Cereal/legume intercropping is a potential pathway to lower fertilizer inputs, but there is insufficient knowledge on the nitrogen (N) response in species mixtures. Here, we investigated N response in maize/peanut intercropping. Maize showed a stronger yield response to N input than peanut both in sole cropping and in intercropping, and so did sole crops relative to intercrops. Maize yield was the highest at the maximum level tested: 360 kg N/ha. Agronomic efficiency (AE) of sole maize was 7.8 kg/kg N input, averaged across five N levels (0, 90, 180, 270, and 360 kg/ha). Partial land equivalent ratios (pLERs) for maize decreased with N input, from 0.70 at zero to 0.64 at 360 kg/ha. Sole peanut showed an optimum yield response to N input, with the highest yield at 270 kg/ha and lower yield at 360 kg/ha. The average AE of sole peanut was 1.3 kg/kg. The pLER of peanut declined from 0.43 at zero to 0.32 at 360 kg/ha while the overall LER decreased from 1.13 to 0.96, indicating relative better performance of intercropping at low than at high N input. Apparent recovery (RE) for N was 27.2% for sole maize, 12.4% for sole peanut, and 7.2% for intercrops. Mean N uptake was 179 kg/ha in sole maize, 199 kg/ha in intercropping, and 264 kg/ha in sole peanut. Partial economic budgeting indicated that with the current low Chinese N fertilizer prices, gross margin is maximized with high N input in sole crops; however, for intercropping, the highest gross margin was attained at intermediate N inputs of 180 or 270 kg/ha. Fertilizer price incentives may facilitate a transition to intercropping at moderate N input in China.