Abstract Effects of decomposing leal litter of Cinnamomum camphora on growth, physiological and phenological traits of Capsicum annuum, and modification of these effects by nitrogen application were investigated using a pot experiment. C. camphora leaf litter was applied at rate of 0, 25, 50 100 g per pot, resulting into four treatments, ie, CK (the control), L₂₅, L₅₀ and L₁₀₀. Nitrogen application was firstly performed on the 39th d of decomposition (3.0 g urea was added to each pot six times). Leaf area, plant height, basal diameter and biomass production of C. annuum were all inhibited sharply by exposure to the leaf litter, and the inhibition effect increased with the increasing leaf litter in terms of both the intensity and the stability. Treated with L₂₅, budding number reduced by 88.7% averagely during 55th-75th d, and the rate of fructification plant decreased by 40% on the 96th d of decomposition, while neither buds nor fruits were observed when exposed to L₅₀ and L₁₀₀ at that time. Pigment contents and net photosynthetic rate (P_n) were impacted due to leaf litter addition, and malonaldehyde (MDA) was only markedly promoted by L₁₀₀. Inhibition on growth and development of C. annuum caused by leaf litter decomposition could be alleviated by nitrogen application. Leaf area treated with leaf litter recovered to the control level on the 52nd d after nitrogen application, and similar results appeared on the 83rd d after nitrogen application for other growth traits. Budding and fructification status were also visibly improved.