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A gliding arc plasma has the advantages of strong reactivity, high energy density, and easy scale-up, so it is very competitive in the field of plasma-based N 2 fixation. In this work, we designed an underwater transfer arc discharge plasma N 2 fixation system based on a reverse vortex flow gliding arc. In full contact with air and water, the plasma could realize the efficient conversion of N 2 , O 2 , and H 2 O, obtaining gaseous NO, NO 2 , and activated water rich in NO x *. The experiment showed that an underwater transfer arc discharge was formed when the current was greater than 0.6 A. Under this operating condition, the conversion rate of N 2 reached 1.63%, the concentration of NO x reached 2.4%, and the production rate of nitrogen-containing products was about 3.41 mol/h. In addition, the energy consumption was as low as 2.21 MJ/mol, the lowest reported value for atmospheric-pressure rotary gliding arc plasma-based N 2 fixation. The generated activated water had abundant NO 3 − and NO 2 − ions, which could be directly applied as N 2 fertilizer in agriculture, promoting plant germination and growth. This paper describes an environmentally friendly and efficient technical route toward developing industrial N 2 fixation/green agriculture, strongly supporting the carbon neutrality concept. • A reverse vortex flow gliding arc under water was developed for N 2 fixation. • The transfer or non-transfer arc can discharge stably in air or under water. • The N 2 fixation energy consumption was reduced to 2.21 MJ/mol. • The plasma-activated water was rapid produced while N 2 fixation. [ABSTRACT FROM AUTHOR]