Rotation of row crops with perennial grasses has been shown to improve soil quality characteristics, decrease pest incidence, and increase crop yield. Experiments were conducted in Florida during 2006 and 2007 at Marianna and Quincy to determine effects of termination date and subsequent tillage of established bahiagrass (Paspalum notatum L.) on peanut (Arachis hypogea L.) yield and market grade characteristics when rotating from bahiagrass to a row crop. Treatments included two bahiagrass termination dates (fall vs. spring) and six tillage methods [strip-till (inrow subsoiling), disk plus moldboard plow, disk plus chisel, disk plus paratill plus strip-till, disk, and strip-till with 45 kg N/ha]. Bahiagrass termination timing did not affect soil mechanical resistance, peanut yield or market grade characteristics, including percentages of sound mature kernels, split kernels, other kernels, and hulls. Although significant differences in soil mechanical resistance were detected among tillage treatments, peanut yield did not differ among the tillage methods except for the disk alone in 2007 at Quincy. Strip-till peanut yield did not respond to N application. When pooled over termination timing, peanut yields in strip-till, disk plus moldboard plow, disk plus chisel, disk plus paratill plus strip-till, disk, and strip-till plus 45 N were 4830, 5000, 4810, 4810, 4770, and 4620 kg/ha, respectively. These results indicate that when using perennial grasses in sod-based rotations, farmers have a wide window from fall to spring to terminate bahiagrass for optimum peanut production regardless of tillage system.