Periodontal ligament stem cells (PDLSCs) are characterized by multiple differentiation potential and potent self‐renewal ability, yet much remains to be elucidated that what determines these properties. Long noncoding RNAs (lncRNAs) have been suggested to involve in multiple biological process under physiological and pathological conditions, including osteogenic differentiation. In the present study, we performed comprehensive lncRNA profiling by lncRNA microarray analysis and identified prostate cancer‐associated ncRNA transcript‐1 (lncPCAT1) was gradually increased in PDLSCs during consecutive osteogenic induction, and it could further positively regulate the osteogenic differentiation both in vitro and in vivo, whereas lncPCAT1 inhibition led to suppressed osteogenic differentiation. Thereafter, we inferred a predicted interaction between lncPCAT1 and miR‐106a‐5p and then confirmed the direct binding sites of miR‐106a‐5p on lncPCAT1. Although miR‐106a‐5p upregulation led to decreased osteogenic differentiation, lncPCAT1 overexpression could reverse its suppression, indicating that lncPCAT1 act as a competing endogenous RNA for miR‐106a‐5p. Moreover, lncPCAT1 could sponge miR‐106a‐5p to upregulate miR‐106a‐5p‐targeted gene BMP2, which was a crucial gene involved in osteogenic differentiation. Interestingly, we found that E2F5, another target of miR‐106a‐5p, could bind to the promoter of lncPCAT1 and then form a feed‐forward regulatory network targeting BMP2. In conclusion, our study provided a novel lncRNA‐miRNA feed‐forward regulatory network and a promising target to modulate the osteogenic differentiation of PDLSCs.