The ammonia addition can significantly inhibit soot formation in hydrocarbon fuel flames. However, due to the complexity of the interaction between nitrogen and hydrocarbon, the inhibiting effect of NH3 addition on soot formation has not been fully understood yet. In this study, a mechanism is constructed through mechanism comparison, reduction, and merging. The constructed mechanism includes ammonia, polycyclic aromatic hydrocarbons (PAHs), and nitrogen-containing aromatic compounds (NACs) sub-chemistry. Then the constructed mechanism is coupled with a soot model to conduct a series of simulations of ammonia/ethylene laminar counterflow flames with various ammonia doping ratios. The results show that the constructed model can reproduce the suppression effect of ammonia addition on soot formation well. To explain the chemical inhibiting effect, the rate of production (ROP) and reaction pathway are analyzed. It can be concluded that the main formation pathway of benzene is C2H4 → C2H3 → C2H2 → C3H3 → A1. The decomposition of ammonia consumes H radical which is necessary for the conversion of C2H4 to C2H3, leading to a decrease in the reaction rates along the benzene formation pathway. Moreover, the N-containing species react with the small hydrocarbon molecules/radicals to form hydrogen cyanide (HCN), in which the reaction between C2H2 and N radical is the largest contributor. Compared to the reactions between C1-C2 species and nitrogen-containing species, the reactions between C3 species and nitrogen-containing species contribute less to the chemical effect of NH3 addition. All these reactions reduce the carbon flux of the benzene formation path. In addition, the impact of reactions between HCN and aromatic hydrocarbons which produce NACs is also investigated. The reactions of HCN addition to benzene and naphthalene compete with the C2H2 addition reactions, resulting in a slightly enhanced inhibiting effect of ammonia addition on soot formation.