The optimized nitrogen fertilization location differs in different rice-growing regions. We optimized nitrogen deep-point application in root-growing zone(NARZ) for transplanted rice in subtropical China. Field plot experiments were conducted over two years(2014–2015) in a double-rice cropping system to evaluate the effects of nitrogen(N) fertilizer location on grain yield and N use efficiency(NUE). Four different nitrogen deep-point application methods(DN) were compared with traditional broadcast application(BN) using granular urea. The results showed that grain yield, recovery efficiency of N(REN), agronomic efficiency of N(AEN), and partial factor productivity of N(PFP_N) significantly increased 10.3–63.4, 13.7–56.7, 24.7–201.9 and 10.2–63.4%, respectively, in DN treatment compared to BN, respectively. We also find that DN treatments increased grain yield as well as grain N content, and thus grain quality, in comparison with conventional BN treatment. Correlation analysis indicated that significant improvement in grain yield and NUE mainly resulted from increases in productive panicle number and grain N content. In our proposed NARZ method, granular urea should be placed 0 to 5 cm around the rice seeding at a 12-cm depth druing rice transplanting. In NARZ, balanced application of N, P and K further improved grain yield and NUE over treatments with a single N deep-point application. High N uptake by the rice plant did not cause significant soil fertility depletion, demonstrating that this method could guarantee sustainable rice production. The optimized nitrogen fertilization location differs in different rice-growing regions. We optimized nitrogen deep-point application in root-growing zone (NARZ) for transplanted rice in subtropical China. Field plot experiments were conducted over two years (2014-2015) in a double-rice cropping system to evaluate the effects of nitrogen (N) fertilizer location on grain yield and N use efficiency (NUE). Four different nitrogen deep-point application methods (DN) were compared with traditional broadcast application (BN) using granular urea . The results showed that grain yield, recovery efficiency of N (REN), agronomic efficiency of N (AEN), and partial factor productivity of N (PFP_N) significantly increased 10.3-63.4, 13.7-56.7, 24.7-201.9 and 10.2-63.4 %, respectively, in DN treatment compared to BN, respectively. We also find that DN treatments increase grain yield as well as grain N content, and thus grain quality, in comparison with conventional BN treatment. Correlation analysis indicated that significant improvement in grain yield and NUE mainly resulted in increases in productive panicle number and grain N content. In our proposed NARZ method, granular urea should be placed 0 to 5 cm around the rice seeding at a 12-cm depth druing rice transplanting . In NARZ, balanced application of N, P and K further improved grain yield and NUE over treatments with a single N deep-point application. High N uptake by the rice plant did not cause significant soil fertility depletion, demonstrating that this method could guarantee sustainable rice production.