Acid ceramidase (murine gene code: Asah1) (50 kDa) belongs to N‐terminal nucleophile hydrolase family. This enzyme is located in the lysosome, which mediates conversion of ceramide (CER) into sphingosine and free fatty acids at acidic pH. CER plays an important role in intracellular sphingolipid metabolism and its increase causes inflammation. The mammalian target of rapamycin complex 1 (mTORC1) signaling on late endosomes (LEs)/lysosomes may control cargo selection, membrane biogenesis, and exosome secretion, which may be fine controlled by lysosomal sphingolipids such as CER. This lysosomal‐CER‐mTOR signaling may be a crucial molecular mechanism responsible for development of arterial medial calcification (AMC). Torin‐1 (5 mg/kg/day), an mTOR inhibitor, significantly decreased aortic medial calcification accompanied with decreased expression of osteogenic markers like osteopontin (OSP) and runt‐related transcription factor 2 (RUNX2) and upregulation of smooth muscle 22α (SM22‐α) in mice receiving high dose of Vitamin D (500 000 IU/kg/day). Asah1fl/fl/SMCre mice had markedly increased co‐localization of mTORC1 with lysosome‐associated membrane protein‐1 (Lamp‐1) (lysosome marker) and decreased co‐localization of vacuolar protein sorting‐associated protein 16 (VPS16) (a multivesicular bodies [MVBs] marker) with Lamp‐1, suggesting mTOR activation caused reduced MVBs interaction with lysosomes. Torin‐1 significantly reduced the co‐localization of mTOR vs Lamp‐1, increased lysosome–MVB interaction which was associated with reduced accumulation of CD63 and annexin 2 (exosome markers) in the coronary arterial wall of mice. Using coronary artery smooth muscle cells (CASMCs), Pi‐stimulation significantly increased p‐mTOR expression in Asah1fl/fl/SMCre CASMCs as compared to WT/WT cells associated with increased calcium deposition and mineralization. Torin‐1 blocked Pi‐induced calcium deposition and mineralization. siRNA mTOR and Torin‐1 significantly reduce co‐localization of mTORC1 with Lamp‐1, increased VPS16 vs Lamp‐1 co‐localization in Pi‐stimulated CASMCs, associated with decreased exosome release. Functionally, Torin‐1 significantly reduces arterial stiffening as shown by restoration from increased pulse wave velocity and decreased elastin breaks. These results suggest that lysosomal CER‐mTOR signaling may play a critical role for the control of lysosome–MVB interaction, exosome secretion and arterial stiffening during AMC.