Nitrous oxide (N
2
O) is the third most important greenhouse gas after carbon dioxide and methane, and a prominent ozone-depleting substance. Agricultural soils are the primary anthropogenic source of N
2
O because of the constant increase in the use of industrial nitrogen (N) fertilizers. The soybean crop is grown on 6% of the world’s arable land, and its production is expected to increase rapidly in the future. In this review, we summarize the current knowledge on N-cycle in the rhizosphere of soybean plants, particularly sources and sinks of N
2
O. Soybean root nodules are the host of dinitrogen (N
2
)-fixing bacteria from the genus
Bradyrhizobium
. Nodule decomposition is the main source of N
2
O in soybean rhizosphere, where soil organisms mediate the nitrogen transformations that produce N
2
O. This N
2
O is either emitted into the atmosphere or further reduced to N
2
by the bradyrhizobial N
2
O reductase (N
2
OR), encoded by the
nos
gene cluster. The dominance of
nos
–
indigenous populations of soybean bradyrhizobia results in the emission of N
2
O into the atmosphere. Hence, inoculation with
nos
+
or
nos
++
(mutants with enhanced N
2
OR activity) bradyrhizobia has proved to be promising strategies to reduce N
2
O emission in the field. We discussed these strategies, the molecular mechanisms underlying them, and the future perspectives to develop better options for global mitigation of N
2
O emission from soils.