An unavoidable consequence of chicken meat production is the generation of substantial quantities of spent litter. This poses several environmental and social challenges, as broiler farms become hotspots for odour emissions. The main source of odour from broiler litter is the microbial decomposition of organic material. Thus, lignite's previously shown capacity to reduce microbial activity in broiler litter was expected to reduce odour emissions from broiler housing. The effect of lignite on odour emission rate (OER) (ou/s) was investigated using dynamic olfactometry over two consecutive summer broiler grow-out cycles in Victoria, Australia, with lignite applied at 3.5 kg/m2. The air quality dispersion model, AERMOD, was used to investigate how lignite's effect on OER influenced the predicted odour dispersion distances and concentrations in the context of various Australian regulatory requirements. Additionally, the effect of lignite on bird production performance was also determined. This study showed that lignite reduced the OER from commercial broiler housing by an average of 56% over both grow-outs. This effect was observed for the duration of the trial. The observed reduction in OER reduced the required separation distances by 44–53% according to the state odour criteria for Victoria, New South Wales, Queensland and South Australia. There were no observed differences in feed conversion ratio, bird live weight or mortality throughout either grow-out. This study demonstrated the capacity of lignite to reduce odour emissions from commercial broiler housing without reducing bird production performance.