Enteric methane (CH4) emissions from dairy cows are an inevitable by-product of rumen fermentation and represent both an environmental concern and a loss of dietary energy, highlighting the need for nutritional strategies that mitigate CH4 emissions while maintaining or improving productivity. To this aim, this study evaluated the effects of dietary N-carbamylglutamate (NCG) supplementation on lactation performance, rumen fermentation, enteric CH4 emissions, and rumen microbiota in dairy cows. Following a 1-week adaptation period, 32 multiparous Holstein cows were assigned to either a control diet or the same diet supplemented with NCG (20 g/d per cow) for 60 days in a completely randomised design; milk yield, DM intake (DMI), rumen fermentation parameters, enteric CH4 and hydrogen (H2) emissions measured using the GreenFeed system, and rumen microbial composition were assessed. Compared with the control group, NCG supplementation significantly increased milk yield while reducing DMI, resulting in improved feed efficiency expressed as milk yield per unit of DMI. However, apparent total-tract digestibility, milk composition, and feed efficiency calculated based on energy-corrected milk (ECM), fat-corrected milk (FCM), or fat- and protein-corrected milk (FPCM) were not significantly affected. NCG supplementation significantly reduced ruminal ammonia nitrogen concentration and increased the concentrations of acetate, propionate, butyrate, and total volatile fatty acid. Enteric CH4 emissions (g/d), yield (g/kg DMI), and emission intensities (g/kg ECM, FCM, and FPCM) were significantly reduced in cows receiving NCG. Rumen microbial analysis revealed increased abundances of NK4A214_group, Acetobacter, Anaeroplasma, Providencia, Saccharopolyspora, Bacillus, Paenibacillus, and unclassified_f__Trichostomatia in the NCG group. Correlation analysis showed that total volatile fatty acid was positively associated with Saccharopolyspora and unclassified_f__Trichostomatia, whereas CH4 emissions were negatively associated with Acetobacter, Anaeroplasma, and Providencia. In conclusion, dietary NCG supplementation improved milk production efficiency and rumen fermentation while reducing enteric CH4 emissions, suggesting that NCG may represent a practical nutritional strategy to enhance productivity and mitigate CH4 emissions in dairy production systems.