This article explores the evidence for monoterpenes to alter rates of nutrient cycling, with particular emphasis on the nitrogen (N) cycle, from an ecosystem perspective. The general N cycle is reviewed and particular processes are noted where monoterpenes could exert control. The theoretical and conceptual basis for a proposed mode of action by which monoterpenes effect the processes of N mineralization and nitrification is presented, along with recent developments. It is hypothesized that monoterpenes retained in litter enhance the frequency of fire, which in turn changes many N-cycling processes. Experimental support for these roles is presented that includes effects at the cellular level and progresses through populations and communities (microbial and invertebrate) involved in N mineralization and immobilization processes. Since many inhibitors of ammonium oxidation also inhibit methane oxidation, monoterpenes also may alter processes within the carbon cycle. Finally, areas for future research that appear most promising are suggested.