The unobtrusive cold environmental temperature can be linked to the development of cancer. This study, for the first time, envisaged cold stress‐mediated induction of a zinc finger protein 726 (ZNF726) in breast cancer. However, the role of ZNF726 in tumorigenesis has not been defined. This study investigated the putative role of ZNF726 in breast cancer tumorigenic potency. Gene expression analysis using multifactorial cancer databases predicted overexpression of ZNF726 in various cancers, including breast cancer. Experimental observations found that malignant breast tissues and highly aggressive MDA‐MB‐231 cells showed an elevated ZNF726 expression as compared to benign and luminal A type (MCF‐7), respectively. Furthermore, ZNF726 silencing decreased breast cancer cell proliferation, epithelial–mesenchymal transition, and invasion accompanied by the inhibition of colony‐forming ability. Concordantly, ZNF726 overexpression significantly demonstrated opposite outcomes than ZNF726 knockdown. Taken together, our findings propose cold‐inducible ZNF726 as a functional oncogene demonstrating its prominent role in facilitating breast tumorigenesis. An inverse correlation between environmental temperature and total serum cholesterol was observed in the previous study. Furthermore, experimental outcomes illustrate that cold stress elevated cholesterol content hinting at the involvement of the cholesterol regulatory pathway in cold‐induced ZNF726 gene regulation. This observation was bolstered by a positive correlation between the expression of cholesterol‐regulatory genes and ZNF726. Exogenous cholesterol treatment elevated ZNF726 transcript levels while knockdown of ZNF726 decreased the cholesterol content via downregulating various cholesterol regulatory gene expressions (e.g., SREBF1/2, HMGCoR, LDLR). Moreover, an underlying mechanism supporting cold‐driven tumorigenesis is proposed through interdependent regulation of cholesterol regulatory pathway and cold‐inducible ZNF726 expression.