Increasing pasture diversity and spatially separated sowing arrangements can potentially increase the dry matter intake of high-quality forages leading to improved animal production. This study investigated the effects of simple (two-species) and diverse (six-species) pastures planted either in mixed or spatially separated adjacent pasture strips on performance, N partitioning, and methane emission of dairy cows. Thirty-six mid-lactation Jersey cows grazed either (1) simple mixed, (2) simple spatially separated, (3) diverse mixed, or (4) diverse spatially separated pastures planted in a complete randomized block design with three replicates. Compared to simple pasture, diverse pasture had lower CP content but higher condensed tannins and total phenolic compounds with an overall positive effect on yield of milk solids, nitrogen utilization, including a reduction of N output from urine, and methane yields per dry matter eaten. The spatial separation increased legume and CP content in simple pasture but decreased NDF in both diverse and simple pastures. In conclusion, increasing diversity using pasture species with higher nutritive value and secondary compounds can help improving the production while decreasing the environmental effect of dairy farming, while spatial separation had a minor effect on feed intake and yield, possibly due to overall high-quality pastures in early spring.