Nitrogen (N) application with a center-pivot fertigation system is commonly used for alfalfa production in the North China Plain, with its barren soil, but improper N application has resulted in lower N use efficiency and even negative effects on yield and quality. The effects of N application levels on soil NO3−-N content, nitrogen utilization, yield and quality of alfalfa at various cuttings and established years were evaluated under sprinkler fertigation to optimize the N application schedule. Four N application levels of 0, 12.5, 25 and 37.5 kg N ha−1 (N0, N1, N2 and N3) for each cutting were applied to alfalfa at the early vegetative stage from the first to third year after establishment. The results showed that the variation in soil NO3−-N content was mainly concentrated in the topsoil (0–40 cm) after N application via sprinkler fertigation. N uptake amount was dramatically improved through the N application for one-year-old alfalfa. Compared to the yield under the N0 treatment, the N application significantly improved the yield of alfalfa at the first two cuttings in the first year. The N use efficiency generally reached a high value with a low N application level. N application had an insignificant effect on the alfalfa quality classification during the three years. For obtaining high yield, quality and N use efficiency of alfalfa planted in the North China Plain, the N application level is recommended as 12.5 kg N ha−1 at the first cutting and 37.5 kg N ha−1 at the second cutting for one-year-old alfalfa.