Nitrogen (N) retention is a common goal of stream-wetland restoration projects in systems with excess nitrate (NO3−), however N retention depends on habitats with high denitrification and uptake rates that interact with NO3−. Legacy sediments deposited along formerly impounded streams bury and disconnect historic floodplain-wetland systems. This disconnection limits sediment-water interactions, decreases N retention and increases N delivery. Restoration with legacy sediment removal should lead to greater N retention due to the reestablishment of wet habitats that interact with NO3−-rich water, but the formation of biogeochemically retentive soils under modern conditions of high NO3−, N retention rates, and recovery time are unclear. An experimental restoration approach undertaken at Big Spring Run in Lancaster, PA, USA was used to test the hypothesis that reconnection of a stream to its historic floodplain with legacy sediment removal enhances N processing and retention. We describe changes in sediment and water concentrations of N and organic carbon (C) along with the changes in sediment biogeochemical processing rates of denitrification, nitrification, and C mineralization, before and for five years following restoration. Our results show that biogeochemical processing increased and higher NO3− retention developed following stream-wetland restoration. NO3− retention improved after several years as organic matter accumulated to ultimately support higher rates of denitrification that transitioned from organic C limitation to NO3− limitation. We conclude that, in systems with high contemporary NO3−, restoration via legacy sediment removal and floodplain reconnection can lead to the accumulation of organic matter and improved biogeochemical NO3− retention over time [ABSTRACT FROM AUTHOR]