High nitrous oxide (N2O) emission potential has been identified in hemiboreal forest on drained Histosols. However, the environmental factors regulating the emissions were unclear. To investigate the importance of different factors on the N2O emission, a modeling approach was accomplished, using CoupModel with Monti-Carlo based multi-criteria calibration method. The model was made to represent a forest on drained peat soil in south-west Sweden where data of fluxes combined with soil properties and plant conditions were used. The model outcome was consistent with measurements of abiotic (soil temperature, net radiation, groundwater level and soil moisture) and biotic responses (net ecosystem exchange and soil respiration). Both dynamics and magnitude of N2O emissions were well simulated compared to measurements (8.7 ± 2.1 kg N/ha/year). The performance indicators for an ensemble of accepted simulations of N2O emission dynamics and magnitudes were correlated to calibrated parameters related to soil anaerobic fraction and atmospheric nitrogen deposition (correlation coefficient, r ≥ 0.4). A weak correlation with N2O emission dynamics was also found for biotic responses (r ≥ 0.3). However, the ME of simulated and measured N2O emissions was better correlated to the ME of soil moisture (r = -0.6), and also to the ME of both the soil temperature (r = 0.53) and groundwater level (r = -0.7). Groundwater level (range from -0.8 m to -0.13 m) was identified as the most important environmental factor regulating the N2O emissions for present forest soil. Profile analysis indicated that N2O was mainly produced in the deeper layers (≥ 0.35 m) of the soil profile. The optimum soil moisture for N2O production was around 70%.