The objective of this work was to study the degradation kinetics of a nitrification inhibitor (NI), dicyandiamide (DCD), and evaluate its effectiveness in reducing nitrous oxide (N2O) emissions in different types of soils. Three soils contrasting in texture, mineralogy, and organic carbon (C) content were incubated alone (control) or with urine at 600 mg N/kg soil with 3 levels of DCD (0, 10, and 20 mg/kg). Emissions of N2O and carbon dioxide (CO2) were measured during the 58-day incubation. Simultaneously, subsamples were collected periodically from the incubating soils (40-day incubation) and the amounts of DCD, NH4+, and NO3− were determined. Our results showed that the half-life of DCD in these laboratory incubating soils at 25°C was 6–15 days and was longer at the higher rate of DCD application. Of the 3 soils studied, DCD degradation was fastest in the brown loam allophanic soil (Typic orthic allophanic) and slowest in the silt loam non-allophanic soil (Argillic-fragic Perch-gley Pallic). The differences in DCD degradation among these soils can be attributed to the differences in the adsorption of DCD and in the microbial activities of the soils. Among the 3 soils the highest reduction in N2O emissions with DCD from the urine application was measured in the non-allophanic silt loam soil followed by non-allophanic sandy loam soil and allophanic brown loam soil. There was no adverse impact of DCD application on soil respiratory activity or microbial biomass.