Growing demands for watershed nitrogen (N) removal have called attention to abundant small bodies of water such as ponds, which have long been heralded as efficient storage and processing systems. Although pond conservation, restoration, and creation have been widely implemented to mitigate N pollution, information is limited regarding the impact of size—that is, whether N removal potential and efficiency are dependent upon pond size. We investigated the dynamics of N removal rates in 56 ponds from a hilly watershed by studying their bimonthly N2 concentrations and fluxes. Our results showed that smaller ponds performed better in net N removal. This can be discerned from the areal N2 fluxes, which were the highest in small ponds (< 4, 000 m2). The corresponding N2 fluxes (4.73 ± 4.53 mmol N2 m−2 d−1) were 2 to 14 times greater than those observed in larger ponds. The N removal efficiency, a metric used to describe the portions of the substrates released as N2, was also significantly higher in the small ponds (∼8.7 %) than in the larger ponds (∼5.0 %). Further regression analysis showed that both areal N2 flux and N removal efficiency were negatively correlated with pond area. The underlying mechanisms behind the size effects of N removal could be attributed to small ponds having larger sediment contact area to water volume ratios. Thus, smaller ponds allow more opportunities for N to interact with bioactive sediments than larger ponds. Overall, our findings contribute to the understanding of the distal role of pond size in affecting N removal. This research also provides a strong rationale for considering the effects of system size when implementing management practices dedicated to maximizing N removal.