Average rates of N 2 fixation in samples of trash mulch (leaf litter) under cane in Barbados, determined by the acetylene reduction technique, varied from 2 to 155 g N. ha-l .day·l. The highest rates occurred during wet weather, and lowest rates occurred in dry and/or old trash. Broadcasting ammonium sulfate on trash had an immediate inhibitory effect on N 2 fixation. The activity is strictly oxygen dependent, and appears to be associated with Azotobacter and Azospirillum spp. In experimental systems, rates of acetylene reduction in mulched trash and in trash incorporated in soil increased with time reaching maximum values at 43 and 72 days respectively, and then declined. Total N 2 fixation for both systems amounted to about 1.2 kg per tonne dry trash. Development of N 2 fixation in trash retained in bags was markedly accelerated by addition of a small amount of decomposing trash, and was strongly inhibited by superphosphate. In one experiment, the rate of N 2 fixation was increased 2 .3-fold by addition of chelated iron. Total N 2 fixation associated with decomposition of trash and other residues is estimated as of the order of 20 kg per hectare. It is suggested that this phenomenon plays an important role in the maintenance of soil fertility under cane.