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Nitrous oxide (N2O) from agricultural soils is a major source of greenhouse gas emissions in New Zealand. Nitrification inhibitors are seen as a potential technology to reduce these N2O emissions from agricultural soils. In previous studies on the effect of dicyandiamide (DCD) on N2O emissions from animal excreta, DCD was directly applied to urine. However, farmers apply DCD to grazed pastures shortly before or after grazing rather than applying it specifically to the urine patches. Accordingly, the objectives of this study were: (1) to test, using chamber measurements, whether the same level of N2O reduction is achieved under grazed conditions where excretal N is non-uniformly deposited, (2) to apply the process-based NZ-DNDC model to simulate the effect of DCD on emission reductions, and (3) to perform a sensitivity analysis on the NZ-DNDC model to investigate how uncertainties in the input parameters affect the modelled N2O emissions. Two circular 1260-m2 treatment plots were grazed simultaneously for 5 h, by 20 cattle on each plot. The following day, DCD was applied in 800 L of water to one of the plots at 10 kg/ha and N2O emissions were measured periodically for 20 days. The cumulative N2O emissions were 220 ± 90 and 110 ± 20 g N2O-N/ha for the untreated and DCD-treated plots, respectively (based on the arithmetic mean and standard error of the chambers). This suggests a reduction in N2O emission from DCD application of ~50 ± 40% from a single grazing event. However, this result should be treated with caution because the possibility of sampling error due to the chamber distribution cannot be excluded. NZ-DNDC simulated N2O emissions of 169 and 68 g N2O-N/ha for the untreated and DCD-treated areas, respectively, corresponding to a reduction of 60% in N2O emissions from DCD application. This level of reduction is consistent with that found in experiments with individual urine patches. N2O emissions found through use of NZ-DNDC were sensitive to uncertainties in the input parameters. The combined effect of varying the initial soil NO3– and NH4+, soil moisture, soil organic carbon, bulk density, clay content, pH, and water-filled pore-space at field capacity inputs within plausible ranges was to change the simulated N2O emissions by –87% to +150%.