While metal immobilization had been increasingly reported with biochar soil amendment (BSA), changes in microbial activity and nitrogen (N) transformation in metal contaminated croplands following biochar addition had been insufficiently addressed. In a field experiment, a Pb/Cd contaminated Inceptisol from North China was amended to topsoil with wheat straw biochar at 0 (CK), 20 (C1) and 40 t ha-1 (C2). The changes within two years following BSA were tested in microbial biomass and respiration, and in abundance of N transforming microbial communities and their activities. Corresponding to the results of decreased soil extractable Cd and Pb, significant reductions in qCO2 were found in rhizosphere and bulk soil only under C2 in the first year. The potential nitrification activity was significantly increased by 20-71%, along with an increase in ammonium (by 7-21%) and nitrate (by 21%-70%) concentration, with BSA compared to CK. Meanwhile, N2O production activity was slightly increased (by up to 20%) but N2O reduction activity greatly enhanced (by up to 84%), with a higher ratio of nosZ/(nirS + nirK), under C2 in rhizosphere in both wheat seasons. Whereas, such changes were not remarkable in bulk soil. Moreover, microbial communities were less respondent to biochar in the second year following the addition. Therefore, microbial growth and functioning for N transforming and cycling in metal contaminated soils could be largely improved with BSA at 40 t ha-1. Of course, studies are still deserved to mimic the long term changes with biochar in N cycling of the metal contaminated dry croplands.