Ammonium carbamate can be formed by the reaction of ammonia NH3 with carbon dioxide CO2, and will slowly decompose to those gases at ordinary temperatures and pressures.

[11] Ammonium carbamate serves a key role in the formation of carbamoyl phosphate, which is necessary for both the urea cycle and the production of pyrimidines.

The carbamate precipitates and can be separated by simple filtration, and the liquid containing the unreacted ammonia can be returned to the reactor.

[15] in this reactor and can then be dehydrated to urea according to the following equation:[14] Ammonium carbamate has also been approved by the Environmental Protection Agency as an inert ingredient present in aluminium phosphide pesticide formulations.

This pesticide is commonly used for insect and rodent control in areas where agricultural products are stored.

The reaction can be carried out in methanol at room temperature and can be isolated in the absence of water, in high purity and yield.