Superfine wool fiber has a soft and luxurious texture, excellent moisture absorption and is warmer and more comfortable than ordinary wool. Liquid ammonia, which has exceptional permeability, exerts a certain modification effect on the surface scales of wool in the finishing and processing of wool fabric, thereby enhancing its wear performance. However, limited research has been conducted on the impact of liquid ammonia on valuable wool fibers such as superfine wool and cashmere. In this article, superfine wool tops were treated with continuous liquid ammonia finishing equipment and the effects of liquid ammonia on the microstructure and surface morphology of superfine wool fiber were investigated. In addition, the changes in length, fineness, anti-felting, and dyeing properties of superfine wool fiber after liquid ammonia treatment were examined. The results demonstrated that the interstitial integrity of intercellular substance of superfine wool was compromised following treatment with liquid ammonia, which had a greater tendency to infiltrate cortical cells and induce alterations in wool structure and performance. Furthermore, the surface scales of superfine wool were damaged after treatment with liquid ammonia, leading to improved anti-felting and dyeing properties.