Groundwater contamination by ammonia is an emerging environmental and public health concern in arid regions that depend heavily on groundwater. This study evaluates groundwater quality in the Northwestern Gulf of Suez, examining chemical characteristics, governing geochemical processes, and noncarcinogenic health risks associated with ammonia. Groundwater was sampled from 12 industrially influenced locations. The water showed near‐neutral pH (7.0–7.9), high electrical conductivity (5310–10 300 µS/cm), and elevated total dissolved solids (3690–6130 ppm), indicating substantial mineralization. Urea concentrations were low (0.12–1.6 ppm), whereas chemical oxygen demand (COD) ranged from 25 to 161 ppm, reflecting variable organic loads. Ammonia reached 277 mg/L in areas adjacent to industrial discharge, far exceeding permissible limits. Principal component analysis revealed that groundwater chemistry is shaped by both natural geochemical processes and anthropogenic inputs, including fertilizer leaching and saline intrusion. Noncarcinogenic health risks from ammonia were assessed for adults, children, and infants across inhalation, dermal, and oral exposure pathways. Hazard quotient values were highest for the oral route, reaching 46.54 for children and 101.19 for infants; dermal exposure also posed significant risk, whereas inhalation was minimal. Most samples—particularly Sample 3—exceeded the safe Hazard Index (HI) threshold (HI > 1), with newborns exhibiting HI values above 100. Overall, groundwater in the study area shows marked chemical deterioration and presents substantial health risks, especially to vulnerable populations. The findings underscore the need for effective mitigation measures, including pollution control, water treatment, and sustained monitoring, to support safe and sustainable groundwater management in ammonia‐affected regions.