Soil nitrogen (N) is an important component in maintaining ecosystem stability, and the introduction of non-native plants can alter N cycling by changing litter quality and quantity, nutrient uptake patterns, and soil food webs. Our goal was to determine the effects of Bromus tectorum (C₃) invasion on soil microbial N cycling in adjacent non-invaded and invaded C₃ and C₄ native arid grasslands. We monitored resin-extractable N, plant and soil δ¹³C and δ¹⁵N, gross rates of inorganic N mineralization and consumption, and the quantity and isotopic composition of microbial phospholipid biomarkers. In invaded C₃ communities, labile soil organic N and gross and net rates of soil N transformations increased, indicating an increase in overall microbial N cycling. In invaded C₄ communities labile soil N stayed constant, but gross N flux rates increased. The δ¹³C of phospholipid biomarkers in invaded C₄ communities showed that some portion of the soil bacterial population preferentially decomposed invader C₃-derived litter over that from the native C₄ species. Invasion in C₄ grasslands also significantly decreased the proportion of fungal to bacterial phospholipid biomarkers. Different processes are occurring in response to B. tectorum invasion in each of these two native grasslands that: 1) alter the size of soil N pools, and/or 2) the activity of the microbial community. Both processes provide mechanisms for altering long-term N dynamics in these ecosystems and highlight how multiple mechanisms can lead to similar effects on ecosystem function, which may be important for the construction of future biogeochemical process models.