River damming is believed to largely intercept nutrients, particularly retain more phosphorus (P) than nitrogen (N), and thus harm primary productivity, fishery catches, and food security downstream, which seriously constrain global hydropower development and poverty relief in undeveloped regions and can drive geo-political disputes between nations along trans-boundary rivers. In this study, we investigated whether reservoirs can instead improve nutrient regimes downstream. We measured different species of N and P as well as microbial functions in water and sediment of cascade reservoirs in the upper Mekong River over 5 years and modelled the influx and outflux of N and P species in each reservoir. Despite partially retaining total N and total P, reservoirs increased the downstream flux of ammonium and soluble reactive phosphorus (SRP). The increase in ammonium and SRP between outflux and influx showed positive linear relationships with the hydraulic residence time of the cascade reservoirs; and the ratio of SRP to dissolved inorganic nitrogen increased along the reservoir cascade. The lentic environment of reservoirs stimulated algae-mediated conversion of nitrate into ammonium in surface water; the hypoxic condition and the priming effect of algae-induced organic matter enhanced release of ammonium from sediment; the synergy of microbial phosphorylation, reductive condition and sediment geochemical properties increased release of SRP. This study is the first to provide solid evidence that hydropower reservoirs improve downstream nutrient bioavailability and N-P balance through a process of retention-transformation-transport, which may benefit primary productivity. These findings could advance our understanding of the eco-environmental impacts of river damming.