Metabotropic glutamate receptor 7 (mGlu7) regulates neurotransmitter release at the presynaptic active zone in the mammalian brain. The regulation of mGlu7 trafficking into and out of the plasma membrane by binding proteins within the C‐terminal region of mGlu7 governs the bidirectional synaptic plasticity. However, the functional importance of the extracellular domain of mGlu7 has not yet been characterized. N‐glycosylation is an abundant posttranslational modification that plays crucial roles in protein folding and forward trafficking, but the role of N‐glycosylation in mGlu7 function remains unknown. In this study, we find that mGlu7 is N‐glycosylated at four asparagine residues in heterologous cells and rat cultured neurons. We demonstrate that N‐glycosylation is essential for forward transport and surface expression of mGlu7. Deglycosylated mGlu7 is retained in the ER, obstructing expression on the cell surface, and is degraded through the autophagolysosomal degradation pathway. In addition, we identify the binding domain of mGlu7 to Elfn1, a transsynaptic adhesion protein. We find that N‐glycosylation of mGlu7 promotes its interaction with Elfn1, thereby enabling proper localization and stable surface expression of mGlu7 at the presynaptic active zone. These findings provide evidence that N‐glycans act to modulate the surface expression, stability, and function of mGlu7.