Abstract Ammonia decomposition is a promising route for on‐demand hydrogen production. Herein, we report the synthesis of a compressive‐strained Ru/Y 2 O 3 ‐MgO catalyst that exhibits exceptional low‐temperature activity for ammonia decomposition. Comprehensive characterizations reveal an ultrathin nanosheet morphology with strong metal‐support interactions, which induce lattice mismatch and generate a compressive strain of approximately 4.9%. Kinetic modeling and density functional theory calculations both identify recombination desorption of N 2 as the rate‐determining step. The compressive strain modulates the electronic structure by shifting its center downward, thereby reducing the activation energy for NN bond recombination and enhancing catalytic performance. Remarkably, the optimized catalyst with ultralow Ru loading (0.91 wt%) achieves an unprecedented hydrogen production rate of 2479.9 mmol·g Ru −1 ·min −1 at 450°C, the highest reported value under comparable conditions. This work provides both kinetic and mechanistic insights into the role of strain engineering in promoting ammonia decomposition, offering a promising avenue for efficient hydrogen production.