There is a need to identify alternative uses for composted manure applications. The objectives in this study were to 1) document the effect of composted dairy manure on soil agronomic characteristics, and 2) evaluate tall wheatgrass yield response to six rates of composted dairy manure. A field trial with a split-plot randomized complete block design and four replications was initiated on a Windthorst sandy loam soil (Udic Paleustalfs) in north-central Texas near Stephenville in September of 2001. Main plots were 1 by 7 m and received a single application of composted manure prior to planting Tall wheatgrass at 17 kg ha-1. Composted dairy manure rates of 0, 11.2, 22.4, 44.8, 89.6, and 179.2 Mg dry matter (DM) ha-1 of a commercial source were applied. Subplots were 1 by 3.5 m and received annual split applications of 224 or 336 kg N ha-1 yr-1. Application of compost improved or increased soil OM, soil pH, soil infiltration, soil P levels, and soil K levels, which, in turn increased tall wheatgrass DM yields (by 96% at the greatest rate compared to the control in 2002-03 and by 58% in 2003-04) yielding up to 9536 kg DM ha-1 in 2002-03 and 6097 kg DM ha-1 in 2003-04. Compost also increased the concentration of forage P (by 56 and 64%) and K (by 40 and 29%) at the greatest compost rate in 2002-03 and 2003-4, respectively. Tall wheatgrass responded to improved soil fertility, and could be utilized to grow forage of high nutritive value (up to 231 g CP kg-1 for the greatest compost rate in 2002-03, a 11.6% increase over the control, and a 9.5% increase, 175 g CP kg-1 , in 2003-04).