The effect of Li3N additive on the Li-Mg-N-H system was examined with respect to the reversible dehydrogenation performance. Screening study with varying Li3N additions (5, 10, 20, and 30 mol%) demonstrates that all are effective for improving the hydrogen desorption capacity. Optimally, incorporation of 10 mol% Li3N improves the practical capacity from 3.9 wt% to approximately 4.7 wt% hydrogen at 200 °C, which drives the dehydrogenation reaction toward completion. Moreover, the capacity enhancement persists well over 10 de-/rehydrogenation cycles. Systematic x-ray diffraction examinations indicate that Li3N additive transforms into LiNH2 and LiH phases and remains during hydrogen cycling. Combined structure/property investigations suggest that the LiNH2 “seeding” should be responsible for the capacity enhancement, which reduces the kinetic barrier associated with the nucleation of intermediate LiNH2. In addition, the concurrent incorporation of LiH is effective for mitigating the ammonia release.