Forest litter plays an important role in determining nutrient cycling, balance and maintaining ecosystem function of forest ecosystems. Studies have shown that litter substrate quality is one of the most important factors affecting litter decomposition in a given area. It is, hence, important to understand the factors controlling litter decomposition in the late decomposition stage and determining organic matter changes over the duration of litter decomposition. Decomposition rate of mixed litter may differ with that of a single specie litter. Supply of soil nutrients is an important factor controlling litter decomposition rate, because the essential nutrients in soil or litter material influence community and activity of decomposers (soil organisms). There were clear relationships among soil nutrient, litter substrate quality, and decomposition. Soil nutrient contents were positively correlated with litter substrate quality, showing that higher contents of soil nutrient were accompanied with good quality of litter substrate, and lower soil nutrients with poor litter quality. The effects of soil fertility on litter decomposition rate varied with environmental conditions. It was reported that litter quality regulates the early stage of carbon decomposition and its accumulation in soil, however, it could not predict the long-term dynamics of soil organic carbon. Hence, the formation and stabilization of soil organic carbon are controlled by the quantity of litter input and its interaction with the soil circumstances rather than by the litter quality. The present paper reviewed the research findings about litter decomposition related to litter substrate quality and soil nutrients, including short-term and long-term litter decomposition, decomposition of single-species vs. mixed-litter decomposition and litter nutrients release. The present paper aimed to clarify the relationship between soil nutrients and litter decomposition, which will help to understand forest succession, forest water conservation and soil re-production capacity.