Livestock excreta deposition is considered as a natural fertilization measure in grassland and also an important pathway for the return of grassland nutrients, which may generate greatly ecological significance for the maintenance of soil fertility and vegetation productivity. In this study, we systematically elaborated the variation of nitrogen embedded within grazing livestock dung and urine patches during its natural decomposition, so as to investigate the possible functional mechanisms and influential effects of livestock dung and urine application on soil nitrogen transformation process and nitrous oxide (N₂O) emission. Results showed that livestock excreta nitrogen input made the grassland area covered by dung and urine to become an active point for soil nitrogen transformation and N₂O emission. Generally speaking, the degradation rate of livestock dung was slow and its nitrogen release usually lasts for a long time, which may generate a series of effects on the soil nitrogen transformation and N₂O emission in the natural grassland. On the contrary, livestock urine deposition would rapidly increase soil mineralized nitrogen content in a short period of time, thus may generate a certain of priming effect on nitrogen dynamic and its form transformation in soil profiles, which probably deeply change the soil available nitrogen contents and the microenvironment that related to N₂O emission. It is worth noting that the differences in dung and urine patch shape, physicochemical properties, degradation and nitrogen release characteristics would inevitably alter the soil redox condition, nitrogen content and its form features of grassland soil profiles in different degrees, which may cause the complicated temporal-spatial response of soil nitrogen migration and transformation processes and the microbial functional mechanism differences in N₂O generation and emission. In addition, the differences in excreta types, soil physicochemical properties, and climatic conditions would complicatedly influence the major processes of soil nitrogen mineralization, immobilization, nitrification and denitrification, and therefore resulted in differential response of N₂O emission in different grassland ecosystems. Scientific suggestions were put forward that more attentions should be paid to strengthening the systematic research on the nitrogen biogeochemical cycling in the faecal-vegetation-soil system of grassland under the background of climate change, in order to deeply improve the theoretical understanding of major nitrogen transformation process and microbial mechanism of N₂O production and emission in the natural grassland. The results would provide scientific and theoretical guidance for optimizing livestock excreta management models, and formulating reasonable regulation strategies of grassland soil nutrients, so as to maintain the sustainable development of grassland ecosystems.