Stepwise solid‐state reaction between LiNH2 and LiAlH4 at a molar ratio of 2:1 is investigated in this paper. It is observed that approximately four H atoms are evolved from a mixture of LiNH2–LiAlH4 (2:1) after mechanical ball milling. The transformation of tetrahedral [AlH4]– in LiAlH4 to the octahedral [AlH6]3– in Li3AlH6 is observed after ball milling LiAlH4 with LiNH2. Al–N bonding is identified by using solid‐state 27Al nuclear magnetic resonance (NMR) measurements. The NMR data, together with the results of X‐ray diffraction and Fourier transform IR measurements, indicate that a Li–Al–N–H intermediate with the chemical composition of Li3AlN2H4 forms after ball milling. Heating the post‐milled sample to 500 °C results in the liberation of an additional four H atoms and the formation of Li3AlN2. More than 5 wt % hydrogen can be reversibly stored by Li3AlN2. The hydrogenated sample contains LiNH2, LiH, and AlN. The role of AlN in the reversible hydrogen storage over Li–Al–N–H is discussed.