N cycling in tropical dry forests is driven by rainfall seasonality but the mechanisms involved are not well understood. We studied the seasonal variation in N dynamics and microbial biomass in the surface litter of a tropical dry forest ecosystem in Mexico over a 2-year period. Litter was collected at 4 different times of the year to determine changes in total, soluble, and microbial C and N concentrations. Additionally, litter from each sampling date was incubated under laboratory conditions to determine potential C mineralization rate, net N mineralization, net C and N microbial immobilization, and net nitrification. Litter C concentrations were highest in the early-dry season and lowest in the rainy season, while the seasonal changes in N concentrations varied between years. Litter P was higher in the rainy than in the early-dry season. Water-soluble organic C (WSOC) and water-soluble N concentrations were highest during the early- and late-dry seasons and represented up to 4.1 and 5.9% of the total C and N, respectively. NH (4) (+) and NO (3) (-) showed different seasonal and annual variations. They represented an average 23% of soluble N. Microbial C was generally higher in the dry than in the wet seasons, while microbial N was lowest in the late-dry and highest in the early-rainy seasons. Incubations showed that lowest potential C mineralization rates and C and N microbial immobilization occurred in rainy season litter, and were positively correlated to WSOC. Net nitrification was highest in rainy season litter. Our results showed that the seasonal pattern in N dynamics was influenced by rainfall seasonality and labile C availability, and not by microbial biomass. We propose a conceptual model to hypothesize how N dynamics in the litter layer of the Chamela tropical dry forest respond to the seasonal variation in rainfall.