Using reciprocal leaf litter transplants, we investigated the effects of contrasting environments (urban vs. rural) and intraspecific variations in oak leaf litter quality on mass loss rates and nitrogen (N) dynamics along an urban-rural gradient in the New York City metropolitan area. Differences in earthworm abundances and temperature had previously been documented in the stands along this gradient. Red oak leaf litter was collected and returned to its original source stand as native litter to measure decay rates along the gradient. To separate site effects from litter quality effects on decay, reciprocal transplants of litter were also made between stands at the extremes of the environmental gradient (urban and rural stands). Land-use had no effect on mass loss and N dynamics of native litter by the end of the 22-month incubation period. The lack of differences in native litter suggests the factors affecting decay were similar across the stands in this study. However, in the transplant study both environment and litter type strongly affected decay of oak leaf litter. On average urban and rural litter decomposed faster over the incubation period in urban than in rural stands (P=0.016 and P=0.001, respectively, repeated measures ANOVA). Differences in mass loss between urban and rural stands resulted in rural environments having less mass remaining than urban environments at the end of the incubation period (25.6 and 46.2% for urban and rural sites, respectively). Likewise, less N remained in leaf residue in urban sites (71.3%) compared to that in rural sites (115.1%). Litter type also affected mass loss rates during the 22-month incubation period. On average rural litter mass loss rates were faster than urban litter rates in both urban and rural stands (P=0.030 and P=0.026, respectively, repeated measures ANOVA). By the end of the incubation period, rural litter exhibited 43 and 20% greater mass loss and retained 44 and 5% less N than urban litter decomposing in the same urban and rural sites, respectively. These results suggest that different factors were controlling mass loss and N release rates along this urban-rural gradient. In urban stands, exotic earthworms and warmer temperatures may be compensating for what would otherwise be slowly decaying leaf litter because of its lower quality. Likewise, the lower quality litter produced in the urban stands may be decreasing the net release of N from litter despite higher temperatures and earthworm activity. Even though native litter decay rates were similar, the differential importance of the factors affecting decay along this gradient could alter the response of these forests to disturbance and variations in climate.