In order to study the soil nitrogen (N) distribution pattern in the root zone of chili peppers under aerated drip irrigation (ADI) conditions and analyze the relationship between soil N distribution and crop growth, two irrigation methods (conventional drip irrigation and ADI) and three N levels (0, 140, and 210 kg hm−2) were set up in this experiment. Soil samples were collected by the soil auger method at the end of different reproductive periods, and the uniformity coefficient of soil N in the spatial distribution was calculated by the method of Christiansen’s coefficient. The growth status and soil-related indices of pepper were determined at each sampling period, and the relationships between soil N distribution and chili pepper growth were obtained based on principal component analysis (PCA). The results showed that the spatial content of soil nitrate-N (NO3−-N) fluctuated little during the whole reproductive period of chili peppers under ADI conditions, and the coefficient of uniformity of soil NO3−-N content distribution increased by 5.29~37.63% compared with that of conventional drip irrigation. The aerated treatment increased the root length and surface area of chili peppers. In addition, the ADI treatments increased the plant height, stem diameter, root vigor, and leaf chlorophyll content to some extent compared with the nonaerated treatment. The results of PCA showed that the yield of chili peppers was positively correlated with the uniformity coefficient of soil NO3−-N, root vigor, and root length. ADI can significantly improve the distribution uniformity of soil NO3−-N and enhance the absorption and utilization of N by the root system, which in turn is conducive to the growth of the crop, the formation of yields, and the improvement of fruit quality.