In this paper we consider the fuzzy ideals of N-group G where N is a nearring. We introduce fuzzy ideal ${ heta}_{mu}$ of the quotient N-group $G/{mu}$ with respect to a fuzzy ideal $mu$ of G. If $mu$ is a fuzzy ideal of G and $ heta$ a fuzzy ideal of $G/{mu}$ such that ${ heta}_{mu};{subseteq};{ heta}$ and ${ heta}_{mu}(0);=;{ heta}(0)$, then corresponding ${sigma}_{ heta};:;G;{ ightarrow};[0,;1]$ is defined and proved that it is a fuzzy ideal of G such that ${mu};{subseteq};{sigma}_{ heta}$ and ${mu}(0);=;{sigma}_{ heta}(0)$. We also prove some results on homomorphisms and fuzzy ideals of N-groups. The image and preimage of fuzzy ideal $mu$ under N-group homomorphism were studied. Finally it is obtained that if $f;:;G;{ ightarrow};G^1$ is an epimorphism of N-groups, then there is an order preserving bijection between the fuzzy ideals of $G^1$ and the fuzzy ideals of G that are constant on kerf. Some examples related to these concepts were illustrated.