Coastal nutrient loading has been linked to a decline in the capacity of seagrass ecosystems to sequester carbon (‘blue carbon’); however, the mechanisms are unclear. Here we investigated how nutrient loading can affect the contribution that seagrass plant material makes to blue carbon stocks by investigating plant quality-decomposition dynamics. Specifically, we used a combination of laboratory and field experiments to account for various changes in biogeochemical cycling from seagrass meadows, ranging from changes in leaf quality to CO2 fluxes. It was found that nutrient loading increased the ‘labile’ content of seagrass (i.e. increased levels of leaf nitrogen, phosphorus and soluble organic carbon (amino acid and soluble sugar content), and at the same time decreased levels of ‘recalcitrant’ carbon (i.e. materials that are harder for microbes to break down, such hemicellulose, cellulose and lignin contents). Nutrient-enriched leaves decomposed ∼ 18 % faster than non-enriched leaves (i.e. greater biomass loss from nutrient-affected seagrass), resulting in ∼ 80 % more CO2 emissions from nutrient-enriched seagrass. We also found that seagrass that naturally contained high levels of labile carbon at the start of the experiment were affected to a greater degree (i.e. higher CO2 emissions) by nutrients addition than seagrass that had high proportions of recalcitrant carbon to begin with. Overall, these findings suggest that nutrient loading can weaken the capacity of seagrass ecosystems to act as blue carbon sinks through its effect on seagrass leaf decomposability.