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(1) Background: Excessive nitrogen (N) fertilizer application in tea plantations leads to challenges such as soil acidification and nitrogen loss, impending the sustainable development of the plantation system. Yet, there is a lack of research on blended fertilization strategies, and limited data regarding N loss when substituting with organic fertilizer. (2) Methods: A year-long field monitoring experiment was conducted to evaluate the effects of substituting compound fertilizer with organic fertilizer, specifically with respect to runoff N loss and uptake of chemical fertilizer N by tea trees. (3) Results: The annual runoff N loss ranged from 0.16 to 0.57 kg·hm⁻² and accounted for a mere 0.22–0.48% of N from fertilizer applications. Substitution with organic fertilizer reduced runoff N loss by 21–53% and improved the tea tree utilization efficiency of chemical fertilizer N from 16% to 27%. A 50% organic fertilizer substitution (based on the amount of N) promoted a net soil N mineralization rate, creating an ammonium-rich environment favored by tea trees. (4) Conclusions: The positive effects of partially substituting N fertilizer with organic fertilizer in tea plantation systems on both N utilization efficiency and N loss were confirmed. If conditions permit, the study team would aim to expand the temporal scope of the study, and to investigate the impact of organic fertilizer substitution on N loss under various precipitation intensities.