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Abstract: Previous studies have suggested grazing may alter nitrogen (N) cycling of grasslands by accelerating or decelerating soil net N mineralization. The important mechanisms controlling these fluxes remain controversial, and more importantly, the consequences on carbon storage and site productivity remain uncertain. Here we present results on the seasonal patterns of soil inorganic N pools and net N mineralization and their linkages to ecosystem functioning from a grazing experiment in the Inner Mongolia grassland, which has been maintained for five years with 7 levels of grazing intensity (0, 1.5, 3.0, 4.5, 6.0, 7.5, and 9.0 sheep ha−1). Net N mineralization and nitrification rates were determined using an in situ soil core incubation method. Our findings demonstrated that, in the non-growing season, the net N mineralization rate was reduced by 181% in the lightly and moderately grazed plots (1.5–4.5 sheep ha−1) and by 147% in the heavily grazed plots (6.0–9.0 sheep ha−1), and the net N immobilization was observed in all grazed treatments. In the early growing season, however, it was increased by 107% in the lightly and moderately grazed plots and by 128% in the heavily grazed plots. In the peak growing season, grazing diminished the net mineralization rate by 71% in the lightly and moderately grazed plots and 108% in the heavily grazed plots. The seasonally dependent effects of grazing on soil inorganic N pools and net N mineralization were strongly mediated by grazing-induced changes in soil temperature and moisture, with soil moisture being predominant in the peak growing season. Grazing alterations of soil inorganic N and net N mineralization were closely linked to the changes in aboveground primary productivity, biomass N allocation, N use efficiency, and soil total nitrogen. Based upon the five year study, we conclude that grazing at moderate to high intensities is unsustainable in terms of productivity and soil N cycling and storage in these systems. [Copyright &y& Elsevier]