AbstractAerobic rice production offers a promising solution to improve water use efficiency and reduce methane (CH4) emissions by minimizing water inundation. However, alternate water‐saving methods for rice cultivation can lead to “trade‐off” emissions of nitrous oxide (N2O). A field experiment was conducted over one season measuring soil‐derived greenhouse gas emissions in irrigated aerobic rice (Oryza sativa L.) under different N fertilizer management at a rate of 220 kg N ha−1, including a nil treatment (“control”); slow release (180 days) polymer‐coated urea (“N180”); banded urea applied upfront (“urea”); and three applications of broadcast urea (“urea‐split”). The N180 treatment reduced soil N2O emissions compared with urea (p < 0.001), with mean cumulative N2O emissions of 4.36 ± 1.07 kg N ha−1 and 27.9 ± 5.70 kg N ha−1, respectively. Soil N2O fluxes were high, reaching up to 1916 and 2900 µg N m2 h−1 after urea application and irrigation/rain events, and were similar to other irrigated crops grown on heavy textured soils. Fertilizer N management had no effect on soil CH4 emissions, which were negligible across all treatments ranging from 1.28 to 2.75 kg C ha−1 over the growing season. Cumulative soil carbon dioxide emissions ranged from 1936 to 3071 kg C ha−1 and were greatest in N180. This case study provides the first evidence in Australia that enhanced efficiency nitrogen fertilizer can substantially reduce N2O emissions from soils in an aerobic rice system. Our findings reinforce the CH4 mitigation potential of water saving rice approaches and demonstrate the need to consider N fertilizer management to control N2O emissions.