Decomposition of green manure is necessary for the nutrient supply in farm soil. Hairy vetch as a green manure is superior to other winter legumes in terms of wintering ability and N accumulation. This experiment was carried out to investigate the decomposition and N release of hairy vetch and its effect on rice production as the following crop in paddy field. Decomposition of hairy vetch placed by soil depth of 0, 10 and 20cm at transplanting time was investigated by mesh bag method, which was enclosed chopped residue in mesh bags. The fate of $^{15}$ N derived from $^{15}$ N-labeled hairy vetch was investigated at harvest in three levels of N fertilization. Grain yield of the transplanted paddy rice cultured with hairy vetch as starter N were compared with that of applying urea as starter N in the field. Hairy vetch residue decomposed very rapidly both in transplanted and dry-seeded paddy field. In transplanted paddy field, hairy vetch residue lost 72-81 % and 86-90% of its weight after one and five month, respectively, as affected by incorporation depth. The C/N ratio of the decomposing vetch residue increased sharply during the early stages and after then, decreased slowly. The amounts of N and P released from the vetch were about 90% and 97% of initial content after one month, respectively. Recoveries of hairy vetch-$^{15}$ N by rice plant were 30.6, 34.6 and 35.7% in 0, 6 and 12 kg urea-N 10 $a^{-l}$ application, respectively, indicating that N fertilization increased the recovery of hairy vetch. $^{15}$ N. Hairy vetch residue incorporated as starter maintained significant N $H_4$$^{+}$-N concentration in soil water of plow layer until effective tillering stage. Grain yield in the plot applied with hairy vetch was not significantly different from that in the plot with urea. We concluded that hairy vetch incorporation could substitute starter N fertilization and showed possibility to reduce N amount of top-dressing.g.g.