Yes, ammonium chloride dissolves in water. In fact, it is highly soluble in water. When ammonium chloride is dissolved in water, it dissociates into its constituent ions, ammonium (NH4+) and chloride (Cl-). These ions can then interact with water molecules to form hydrogen bonds, which is what allows the compound to dissolve. The solubility of ammonium chloride in water increases as the temperature increases, meaning that it dissolves more readily in hot water than in cold water.