This solid, which is dangerously reactive toward water, is white, but commercial samples are typically gray due to the presence of small quantities of metallic iron from the manufacturing process.

Sodium amide is mainly used as a strong base in organic chemistry, often suspended (it is insoluble[7]) in liquid ammonia solution.

In the industrial production of indigo, sodium amide is a component of the highly basic mixture that induces cyclisation of N-phenylglycine.

[9] It induces the loss of two equivalents of hydrogen bromide from a vicinal dibromoalkane to give a carbon–carbon triple bond, as in a preparation of phenylacetylene.

[9] It can decompose violently on contact with water, producing ammonia and sodium hydroxide: When burned in oxygen, it will give oxides of sodium (which react with the produced water, giving sodium hydroxide) along with nitrogen oxides: In the presence of limited quantities of air and moisture, such as in a poorly closed container, explosive mixtures of peroxides may form.

As such, sodium amide is to be stored in a tightly closed container, under an atmosphere of an inert gas.

Sodium amide samples which are yellow or brown in color represent explosion risks.