The surface hydrology and diffuse pollution loading is hypothesized based on the unique characteristics under different rainfall types in watersheds with a subtropical monsoon climate. This study evaluated the effects of different rainfall event intensity on surface runoff and diffuse nitrogen loss in a subtropical watershed located in the latitude range between 22.5° north and 25° north in southern China by adapting the hydrological model SWAT (Soil and Water Assessment Tool). The rainfall events were classified into four categories including light rainfall (LR), moderate rainfall (MR), intense rainfall (IR), and extreme rainfall (ER). Our results showed that the ER events had the lowest occurrences of 7 days per year, but they contributed the most to total surface runoff (54.29%) and TN losses (57.63%) in the subtropical watershed researched. Although forests and pastures had a better effect on reducing diffuse pollution, their surface runoff and nitrogen loss were still proved to be serious under ER events. As for the nitrogen loss form, water-soluble nitrogen oxides nitrogen (ON-N) loss was the dominant form of total nitrogen (TN) loss, which accounted for 90% of the total loss in the simulated watershed in the subtropical monsoon climate region. Under LR events, however, nitrate nitrogen (NO3-N) accounted for 74.54% and 55.59% of TN losses from paddy fields and dry lands, respectively. The effects of antecedent soil water content (ASW) on surface runoff and TN loss were higher under ER events. The surface runoff and TN loss in the high-ASW condition were 1.17−3.86 times and 1.34−1.76 times higher, respectively, than in the low-ASW condition. These findings highlighted the important influence of ER events on diffuse pollution and have significant implications for controlling diffuse pollution under different rainfall types. This conclusion proved that extra attention and efforts are required in handling non-point-source pollution in subtropical monsoon watersheds than the watersheds in cooler regions because the natural systems including forest and pastures are no longer effective enough in controlling surface runoff and TN loss during ER.