We now have a fairly complete picture of the nitrogen cycle in grassland soils and the relevant features are discussed.The large amounts of nitrogen needed to obtain high production from pastures are derived initially almost entirely from nitrogen-fixation by clovers in New Zealand, where under some of the better conditions clovers may fix about 600 lb. of nitrogen per acre per year. The associated grasses derive their nitrogen from soil organic matter, underground transference from clovers, and from excreted nitrogen when a pasture is grazed. With appropriate management and proper nutrition, clover production can be maintained and the organic matter content of soils may increase rapidly t o high levels. The various ways in which nitrogen may be lost from the cycle, and gaps in our knowledge are indicated.The tremendous influence of the clover-grass-animal association on the organic cycle is discussed, and if the C : N : organic S : organic P ratio in soils is assumed to remain fairly constant, it is clear that sulphur and phosphorus may be two most important nutrients during the phase of accumulation of organic matter under pastures where clovers are being relied upon as the main source of nitrogen.