Overuse of nitrogenous fertilizers especially urea has been considered a significant source of reactive N causing acute environmental impacts through leaching, volatilization, and N2O gas emission from fertilized crop fields. However, some recent studies have proposed that such environmental losses of N can be ignored by adapting an alternative way of combining nitrogenous fertilizer with pyrolyzed biomass (biochar). Therefore, the effect of co-application of rice-residue biochar (RB) or poultry manure biochar (PB) along with urea on N dynamics was investigated by conducting a 60-day incubation experiment. The results showed that urea led to greater N mineralization (0.2 µg N g−1 soil day−1) due to the easy availability of ammonical-N (NH4+-N) produced from hydrolysis that acted as a substrate for nitrification. Sole application of biochars (RB or PB) or their co-application with urea resulted in 38–45% and 19–28% lower N mineralization than the sole urea amended soil, respectively. The lower N mineralization in sole biochar or biochar plus urea amended soil was most likely caused due to (1) increased C:N ratio of the biochar amended soil, (2) adsorption of NH4+-N by biochar, (3) microbial immobilization of the nitrogen in the amended soil, and (4) lower urease activity in the treatments amended with biochar. Thus, it may be concluded that the co-application of biochar with urea can reduce N losses through moderation of N mineralization and make it available to plants for longer periods.