These four characters combine to paint a vivid picture: [To] forget a great kindness (and) betray one's moral duty.
The weight of 忘恩负义 is rooted in the foundational Chinese values of 关系 (guānxi) and 人情 (rénqíng). Chinese society is traditionally built on a complex web of reciprocal relationships and mutual obligations. Receiving a significant favor (恩, ēn) creates a social and moral debt that one is expected to remember and, when possible, repay. This is the core of 报恩 (bào'ēn), repaying kindness. To commit 忘恩负义 is to shred this social fabric. It's a rejection of harmony, loyalty, and reciprocity. It signals that a person is untrustworthy and operates outside of acceptable social norms. Comparison to Western Culture: In English, one might call someone “ungrateful” or a “backstabber.” While “backstabber” comes close, 忘恩负义 is often more profound.
忘恩负义 is a very strong and formal-sounding term, though it can be hurled in a heated, informal argument to deliver a powerful emotional blow. It is almost exclusively used to condemn someone's actions and character.
Because it's such a severe charge, you should only use it when a significant favor has been met with a significant betrayal.