In recent years poultry producers have turned to pelletization to increase the economic feasibility of transporting poultry litter from nutrient-rich poultry production areas to areas of high demand for nutrients such as the Mississippi Delta Region of Arkansas (MDRA). Field studies on evaluation of cotton response to pelleted poultry litter (PPL) in the MDRA are needed to provide information for agronomically and environmentally sound utilization of PPL in as a source of N for cotton production in this region. During the 2006 growing season a replicated field experiment was conducted at the University of Arkansas Cotton Branch Experiment Station (CBES) in Marianna to evaluate the effect of soil applied pelleted poultry litter (PPL) and urea on cotton and soil. Nitrogen source (urea or PPL) was the main plot factor and N rate (0, 30, 60, 90, 120, and 150 lb/acre) was the subplot factor. The effect of inorganic N fertilizer and PPL application rate on seed-cotton yield, petiole NO3-N concentration, cotton leaf blade nutrients and soil chemical properties were evaluated.