To investigate the effects of paper sludge on seasonal variations of volatile lower fatty acids in paddy soil, paper sludge was applied to pots at the rate of either 300, 600, 900 or 1,200 kg/l0a which was either preadjusted at a C/N ratio of 30 : 1 or not adjusted. The decomposition rate of paper sludge, the evolution of $CO_2$, and the fractions of volatile lower fatty acids in the soil were determined. The results are summarized as follows: 1. Paper sludge was decomposed to $35{sim}44%$, and its C/N ratio was $55{sim}82$, respectively, at 120 days after treatment. 2. The evolution of $CO_2$, in the soil was proportional to the amount of paper sludge added. Significant positive correlations were observed the $CO_2$ evolution was compared with the decomposition rate of paper sludge, and volatile fatty acid contents in soil. 3. Acetic, propionic, butyric, i-butyric, valeric and i-valeric acids were identified in all the soils investigated. The content of the total volatile fatty acids in the soil increased with as the application of paper sludge increased. The formation of the acids was the highest at 25 days after treatment, and thereafter the contents of the acids decreased as time elapsed. 4. The volatile fatty acids in the soil inhibited the growth of paddy rice in early stages. The contents of acetic, propionic and i-valeric acids in the soil negatively, correlated with the uptake of N, $P_2O_5$, $K_2O$, CaO, MgO and $SiO_2$ in the paddy rice at 25 days after transplantation. In addition, the uptake of $P_2O_5$ and CaO in the paddy rice negatively correlated with the content of butyric acid in the soil. 5. The content of total volatile fatty acids positively correlated with the content of $Fe^{++}$ and $Mn^{++}$ in the soil at 25 days after transplantation. A significantly positive correlation was observed between $Fe^{++}$ and acetic acid contents in the soil.