Two layers of review
To appeal an N-400 denial, an applicant generally starts by filing Form N-336, a request for an administrative hearing before a different USCIS officer. That officer can take a fresh look at the application, consider new evidence, and in some cases conduct a new interview or retest. If the denial is upheld after that hearing, a federal district court can review the decision, and that review is not limited to the agency's reasoning. Filing a new N-400 instead is sometimes an option, depending on why the application was denied, but it does not make the reason for the first denial go away.
Read the stated reason carefully
The reason given in the denial shapes everything that follows. A denial for a failed test or a missing document is a different problem from one based on good moral character, a criminal record, or a question about how permanent residence was obtained in the first place. Some of those reasons can raise issues beyond citizenship, including whether you could be placed in removal proceedings, so the choice of response should account for that risk. Gather the denial notice, a copy of your complete N-400 and supporting documents, any notes from the interview, and certified court dispositions for any arrest, however old.
Weighing a hearing, a new filing, or waiting
Our review looks at the denial, your immigration history, and any travel, tax, or criminal record issues that may surface at a hearing. We discuss whether a hearing request, a new application, or waiting makes more sense, and what evidence would actually address the officer's concern. The hearing request has a short filing deadline and a fee, so the conversation should happen soon after the decision arrives. USCIS makes the decision, and no one can tell you in advance how an officer or a court will see the record; our role is to make sure the record is complete and the response speaks to the stated reason.