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Since the mid-1990s, a Pinus radiata (D. Don) plantation growing on a sandy, low fertility soil at Rabbit Island near Nelson, New Zealand received aerobically digested liquid biosolids. An experimental research trial was established on the site to investigate the effects of biosolids applications on tree growth, nutrition, soil and ground water quality. Biosolids were applied to the trial site in 1997 and 2000, at three application rates: 0 (control), 300 (standard) and 600 kg N ha−1 (high). Biosolids application significantly increased tree growth. This was mainly attributed to improved N supply, demonstrated by the enhanced N concentration in the tree foliage. Soil analysis indicated that biosolids application have not caused significant changes in concentrations of most nutrients. However, biosolids treatments significantly increased the available P (Olsen P). Of the heavy metals only total Cu concentrations in the soil increased after biosolids application. Groundwater quality, which was monitored quarterly, has not been affected by biosolids application. The concentrations of nitrate and heavy metals in groundwater were well below the maximum acceptable values in drinking water standards. Biological treatment of sewage and digestion of sewage sludge resulted in the enrichment of 15N in the biosolids (δ15N values between 5.0 and 8.7‰). Such enrichment was used as a tracer to study the fate of biosolids derived N. The elevated δ15N in biosolids treated pine foliage indicated that a considerable amount N was sourced from biosolids. Analysis of δ15N in understorey plants showed that both non-legume and legume understorey plants took up N from the biosolids, and acted as a N sink, reducing N availability for leaching. Our study showed that application of biosolids to a plantation forest can significantly improve tree nutrition and site productivity without resulting in any measurable adverse effect on the receiving environment.