Quorum sensing is a density‐dependent chemical process between bacteria, which may be intergenus or intragenus. N‐acyl homoserine lactones (HSLs) are a type of small signaling molecules associated with Gram‐negative bacteria for monitoring their own population density. The present study unveils the mechanism of HSLs in Achromobacter denitrificans SP1 while transforming di(2‐ethylhexyl) phthalate (DEHP) into prodigiosin in a simple basal salt medium. The primary detection of HSLs was done by the colorimetric method. Fourier‐transform infrared spectroscopy and liquid chromatography–mass spectrometry‐quadrupole time‐of‐flight confirmed and identified the HSLs. The maximum production of HSLs was observed between 24 and 72 h of incubation, which is noted to be a peak time of DEHP degradation. A total of 57.2% of DEHP was degraded within 30 h and complete degradation was observed within 72 h of incubation. Regulation in the synthesis of various acyl‐HSL molecules, viz. 3OC6‐HSL in the initial stage of DEHP stress, 3OC8‐HSL, and C10‐HSL during the time of degradation and 3OC12‐HSL on completion of degradation was noticed. The role of HSLs on the production of prodigiosin was confirmed using vanillin as an HSL inhibitor. Through the selective activation of HSL molecules, A. denitrificans SP1 sustain the changing stressful conditions. Supplementation of acyl‐HSL signal molecules may boost up the efficacy of A. denitrificans SP1 in both DEHP degradation and prodigiosin production which offers great potential towards the management of DEHP containing plastic wastes.