We assessed the influence of the addition of four municipal or agricultural by-products (cotton gin waste, ground newsprint, woodchips, or yard trimmings), combined with two sources of nitrogen (N), [ammonium nitrate (NH4NO3) or poultry litter] as carbon (C) sources on active bacterial, active fungal and total microbial biomass, cellulose decomposition, potential net mineralization of soil C and N and soil nutrient status in agricultural soils. Cotton gin waste as a C source promoted the highest potential net N mineralization and N turnover. Municipal or agricultural by-products as C sources had no affect on active bacterial, active fungal or total microbial biomass, C turnover, or the ratio of net C:N mineralized. Organic by-products and N additions to soil did not consistently affect C turnover rates, active bacterial, active fungal or total microbial biomass. After 3, 6 or 9 weeks of laboratory incubation, soil amended with organic by-products plus poultry Litter resulted in higher cellulose degradation rates than soil amended with organic by-products plus NH4NO3. Cellulose degradation was highest when soil was amended with newsprint plus poultry litter. When soil was amended with organic by-products plus NH4NO3, cellulose degradation did not differ from soil amended with only poultry litter or unamended soil. Soil amended with organic by-products had higher concentrations of soil C than soil amended with only poultry litter or unamended soil. Soil amended with organic by-products plus N as poultry litter generally, but not always, had higher extractable P, K, Ca, and Mg concentrations than soil amended with poultry litter or unamende soil. Agricultural soil amended with organic byproducts and N had higher extractable N, P, K, Ca and Mg than unamended soil. Since cotton gin waste plus poultry litter resulted in higher cellulose degradation and net N mineralization, its use may result in faster increase in soil nutrient status than the other organic by-products and N sources that were tested.