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Leguminous crops, particularly winter annuals, have been utilized in conservation systems to partially meet nitrogen (N) requirements of succeeding summer cash crops. Previous research also highlights the benefits of utilizing summer annual legumes in rotation with non-leguminous crops. This study assessed the N contribution of peanut (Arachis hypogaea L.) residues to a subsequent cotton (Gossypium hirsitum L.) crop in a conservation system on a Dothan sandy loam (fine-loamy, kaolinitic, thermic Plinthic Kandiudults) at Headland, AL during the 2003–2005 growing seasons. Treatments were arranged in a split plot design, with main plots of peanut residue retained or removed from the soil surface, and subplots as N application rates (0, 34, 67, and 101 kg ha−1) applied in fall and spring. Peanut residue did not influence seed cotton yields, leaf N concentrations, or plant N uptake for either growth stage or year of the experiment. There was a trend for peanut residue to increase whole plant biomass measured at the first square in two of three years. Seed cotton yields and plant parameters measured at the first square and mid-bloom responded favorably to spring N applications, but the recommended 101 kg N ha−1 did not maximize yields. The results from this study indicate that peanut residue does not contribute significant amounts of N to a succeeding cotton crop, however, retaining residue on the soil surface provides other benefits to soils in the southeastern U.S.