Soil nitrogen (N) transformations control N availability and plant production and pose environmental concerns when N is lost, raising issues such as soil acidification, water contamination, and climate change. Former studies suggested that soil N cycling is chiefly regulated by microbial activity; however, emerging evidence indicates that this regulation is disrupted by heavy metal (HM) contamination, which alters microbial communities and enzyme functions critical to N transformations. Environmental factors like soil organic carbon, soil texture, water content, temperature, soil pH, N fertilization, and redox status play significant roles in modulating the response of soil N cycling to HM contamination. This review examines how different HMs affect soil N processes, including N fixation, mineralization, nitrification, denitrification, dissimilatory nitrate reduction to ammonium (DNRA), and immobilization, as well as microbial activities and functional genes related to soil N transformations. The review additionally outlines the impact of HMs on environmental degradation, including the risk of soil N losses (e.g., leaching, runoff, and gaseous emissions) and depletion of soil fertility, thus threatening the sustainability of the ecosystem. The effect of edaphic factors and fertilization on soil N cycling response to HM contamination was also examined. The effect of phytoremediation, a sustainable approach to remediate HM polluted soils, on N cycling was also reviewed. Thus, this review underscores the importance of increasing research and innovative strategies to combat HM pollution's effects to enhance soil health, boost crop yields, and protect soil stability and productivity.