A process for preparing ammonium dinitramide by: (1) nitrating either ethyl carbamate or methyl carbamate to form the corronding mononitrate compound, ethyl N-nitrocarbamate or methyl N-nitrocarbamate; (2) reacting the N-nitrocarbamate with ammonia under anhydrous conditions to produce the corresponding ammonium salt, ammonium ethyl N-nitrocarbamate or ammonium methyl N-nitrocarbamate; (3) nitrating the ammonium salt and then treating the reaction mixture with ammonia to produce ammonium dinitramide, ammonium nitrate, and regenerate the original ethyl carbamate or methyl carbamate compound.