Abstract: Field and demonstration experiments were combined to study effects of coated urea on yield, quality and economic returns of tomato. 20% of coated urea was mixed with seedling substrate and the other 80% was banded preplant application (the N application rate of coated urea was 50% of conventional N rate). The results showed that the seedling strength index of coated urea with contact application was 47.9% higher than that of the conventional seedling. Compared to the urea with basal application and 3 topdressings, the tomato yield with coated urea increased by 9.7% and 5.1%, respectively, and the nitrogen use efficiency (NUE) increased by 9.0-10.2 percentage point. Tomato quality with coated urea was improved compared to the urea, in which the soluble sugar content increased by 6.5%-9.4% and Vitamin C content increased by 10%-11.3%. Economic returns of tomato with the coated urea increased by 33.8% compared to the conventional N application, though N input of the former was reduced by RMB 44 yuan per hectare. Nitrate dynamics of surface soil layer (0-20 cm) with the coated urea cut a peak to fill valley in comparison to regular urea, consequently the risk of nitrate leaching was dramatically reduced.