Aerobic composting is an effective way to treat and recycle livestock manure. However, the aerobic composting of livestock manure is a potential source of the greenhouse gas nitrous oxide (N2O), which closely relates to the global greenhouse effect and ozone depletion. With the expansion of livestock industry and the dramatic increasing yield of manure compost, the N2O emission during the aerobic composting has become a severe problem. The researches on the mechanisms of N2O emission during livestock manure composting have attracted increasing concerns. In this paper, the recent researches on the N2O generation approaches, emission dynamics, potential affecting factors, and microbiological mechanisms of N2O emission during livestock manure aerobic composting were reviewed, and the measures to control the N2O emission during composting process were summarized. Some perspectives for the future researches in this field were suggested.