A suite of laser diagnostics is used to study kinetics of vibrational energy transfer and plasma chemical reactions in a nanosecond pulse, diffuse filament electric discharge and afterglow in N2 and dry air at 100 Torr. Laser-induced fluorescence of NO and two-photon absorption laser-induced fluorescence of O and N atoms are used to measure absolute, time-resolved number densities of these species after the discharge pulse, and picosecond coherent anti-Stokes Raman spectroscopy is used to measure time-resolved rotational temperature and ground electronic state N2(v = 0–4) vibrational level populations. The plasma filament diameter, determined from plasma emission and NO planar laser-induced fluorescence images, remains nearly constant after the discharge pulse, over a few hundred microseconds, and does not exhibit expansion on microsecond time scale. Peak temperature in the discharge and the afterglow is low, T ≈ 370 K, in spite of significant vibrational nonequilibrium, with peak N2 vibrational temperature of Tv ≈ 2000 K. Significant vibrational temperature rise in the afterglow is likely caused by the downward N2–N2 vibration–vibration (V–V) energy transfer. Simple kinetic modeling of time-resolved N, O, and NO number densities in the afterglow, on the time scale longer compared to relaxation and quenching time of excited species generated in the plasma, is in good agreement with the data. In nitrogen, the N atom density after the discharge pulse is controlled by three-body recombination and radial diffusion. In air, N, NO and O concentrations are dominated by the reverse Zel'dovich reaction, N + NO → N2 + O, and ozone formation reaction, O + O2 + M → O3 + M, respectively. The effect of vibrationally excited nitrogen molecules and excited N atoms on NO formation kinetics is estimated to be negligible. The results suggest that NO formation in the nanosecond pulse discharge is dominated by reactions of excited electronic states of nitrogen, occurring on microsecond time scale.