In this study, we investigated whether ammonia emissions from industrial composting of organic waste may influence the surrounding environment, using lichens as bioindicators. To this purpose, samples of N-tolerant and N-sensitive lichens, namely Xanthoria parietina and Evernia prunastri, were transplanted for 1-3 months along transects at increasing distance (0-400 m) from a composting facility in Tuscany, Italy. Atmospheric concentrations of ammonia were measured using passive samplers. The physiological response of lichen transplants was investigated by means of the photosynthetic efficiency (measured as chlorophyll a fluorescence emission), the integrity of cell membranes (measured as electrolyte leakage), and sample viability (measured as enzymatic activity of dehydrogenase). Epiphytic lichen communities were investigated using biodiversity indices. The results showed decreasing concentrations of ammonia, from 48.7 μg/m(3) at the composting facility to 2.7 μg/m(3) at 400 m. The N-tolerant X. parietina was not affected and some physiological parameters even showed a higher performance, while the N-sensitive E. prunastri showed a reduced performance with increasing atmospheric concentrations approaching the source. A shift from lichen communities composed by meso-acidophilous species (actual condition) to more nitrophilous communities in the near future, approaching the composting facility is suggested. It is concluded that lichens can provide useful data for decision-makers to establish correct science-based environmentally sustainable waste management policies.