A field experiment was conducted to investigate the fate of ^15N-labeled urea and its residual effect under the winter wheat (Triticum aestivum L.) and summer maize (Zea mays L.) rotation system on the North China Plain. Compared to a conventional application rate of 360 kg N ha^-1 (N360), a reduced rate of 120 kg N ha^-1 (N120) led to a significant increase (P 〈 0.05) in wheat yield and no significant differences were found for maize. However, in the 0-100 cm soil profile at harvest, compared with N360, N120 led to significant decreases (P 〈 0.05) of percent residual N and percent unaccounted-for N, which possibly reflected losses from the managed system. Of the residual fertilizer N in the soil profile, 25.6%-44.7% and 20.7%-38.2% for N120 and N360, respectively, were in the organic N pool, whereas 0.3%-3.0% and 11.2%-24.4%, correspondingly, were in the nitrate pool, indicating a higher potential for leaching loss associated with application at the conventional rate. Recovery of residual N in the soil profile by succeeding crops was less than 7.5% of the applied N. For N120, total soil N balance was negative; however, there was still considerable mineral N (NH4^+-N and NO3^--N) in the soil profile after harvest. Therefore, N120 could be considered ngronomically acceptable in the short run, but for long-term sustainability, the N rate should be recommended based on a soil mineral N test and a plant tissue nitrate test to maintain the soil fertility.