Abstract.A change in German energy policy has resulted in a strong increase in the number of biogas plants in Germany. As a consequence, huge amounts of nutrient-rich residues, the by-products of the fermentative process, are used as organic fertilizers. Drained peatlands are increasingly used to satisfy the huge demand for fermentative substrates (e.g., energy crops, grass silage) and the digestate is returned to the peatlands. However, drained organic soils are considered as hot spots for nitrous oxide (N 2 O) emissions and organic fertilization is additionally known to increase N 2 O emissions from managed grasslands. Our study addressed the questions (a) to what extent biogas digestate and cattle slurry application increase N 2 O and methane (CH 4 ) fluxes as well as the mineral nitrogen use efficiency (NUE min ) and grass yield, and (b) how different soil organic matter contents (SOMs) and nitrogen contents promote the production of N 2 O. In addition NH 3 volatilization was determined at one application event to obtain first clues with respect to the effects of soil and fertilizer types. The study was conducted at two sites within a grassland parcel, which differed in their soil organic carbon (SOC) and N contents. At each site (named C orgmedium and C org -high) three plots were established: one was fertilized five times with biogas digestate, one with cattle slurry, and the third served as control plot. On each plot, fluxes of N 2 O and CH 4 were measured on three replicates over 2 years using the closed chamber method. For NH 3 measurements we used the calibrated dynamic chamber method. On an annual basis, the application of biogas digestate significantly enhanced the N 2 O fluxes compared to the application of cattle slurry and additionally increased the plant N-uptake and NUE min . Furthermore, N 2 O fluxes from the C org -high treatments significantly exceeded N 2 O fluxes from the C org -medium treatments. Annual cumulative emissions ranged from 0.91 ± 0.49 to 3.14 ± 0.91 kg N ha −1 yr −1 . Significantly different CH 4 fluxes between the investigated treatments or the different soil types were not observed. Cumulative annual CH 4 exchange rates varied between −0.21±0.19 and −1.06 ± 0.46 kg C ha −1 yr −1 . Significantly higher NH 3 losses, NUE min and grass yields from treatments fertilized with biogas digestate compared to those fertilized with cattle slurry were observed. The total NH 3 losses following the splash plate application were 18.17 kg N ha −1 for the digestate treatments and 3.48 kg N ha −1 for the slurry treatments (36 and 15 % of applied NH