Influence of herbicide oxadiazon on soil microbial activity and nitrogen dynamics was evaluated. Soil samples were treated with oxadiazon at field and tenfold field rates and incubated. Organic amendment was added as an additional substrate for soil microorganisms. Tenfold field rate oxadiazon stimulated substrate-induced respiration (SIR) and dehydrogenase activity (DHA) in amended soil as compared to unamended soil and control treatment. Soil urease activity was not affected by oxadiazon treatment. In both amended and unamended soils, treatment of the herbicide at higher rate had not significant influence on $NH_4$-N and $NO_3$-N concentrations. Higher dose of oxadiazon was degraded in both soils, but dissipation rate in amended soil was higher than unamended soil, with half-lives ($t_{1/2}$) of 23.1 and 138.6 days, respectively. Recommended field rate did not affect microbial activity and nitrogen dynamics in soil ecosystem. Results showed influence of oxadiazon on cycling processes of nitrogen in soil was not significant however its effect on microbial activity was a tendency depending on addition of organic amendment to soil.