Forest soils play a pivotal role as global carbon (C) sinks, where the dynamics of soil organic matter (SOM) are significantly influenced by ectomycorrhizal (ECM) fungi. While correlations between ECM fungal community composition and soil C storage have been documented, the underlying mechanisms behind this remain unclear. Here, we conducted controlled experiments using pure cultures growing on naturally complex SOM extracts to test how ECM fungi regulate soil C and nitrogen (N) dynamics in response to varying inorganic N availability, in both monoculture and mixed culture conditions. ECM species dominant in N-poor soils exhibited superior SOM decay capabilities compared with those prevalent in N-rich soils. Inorganic N addition alleviated N limitation for ECM species but exacerbated their C limitation, reflected by reduced N compound decomposition and increased C compound decomposition. In mixed cultures without inorganic N supplementation, ECM species with greater SOM decomposition potential facilitated the persistence of less proficient SOM decomposers. Regardless of inorganic N availability, ECM species in mixed cultures demonstrated a preference for C over N, intensifying relatively labile C compound decomposition. This study highlights the complex interactions between ECM species, their nutritional requirements, the nutritional environment of their habitat, and their role in modifying SOM.