Abstract: This study focused on the nitrogen loss via runoff, change of nitrogen in different forms in surface water in paddy field, and grain yield, through further reduction of nitrogen fertilizer application rate under green manuring without basal dressing. Results showed that with 150 kg·hm^-2 inorganic N fertilizer input after return of green manure to soil, no basal dressing could not only sharply reduce N concentration in surface water and decrease 17.2% of N loss, but also increase 2.8% of grain yield in comparison with basal dressing. It was a worthwhile farming method that inorganic nitrogen fertilizer was not used for basal dressing but for topdressing after return of green manure to soil in Taihu Area. However, the grain yield would decrease if the rate of topdressing nitrogen was excessively reduced or increased. After all, it was feasible to realize harmonization of grain yield and environmental benefits in Taihu Area, with 133 kg·hm^-2 inorganic N fertilizer input after return of green manure to soil as well as no application of basal dressing, which could greatly reduce N fertilizer input and N loss as well as ensure rice yield.