The impact of measurable residual disease (MRD) in relapse/refractory multiple myeloma (RRMM) patients treated with T‐cell redirecting immunotherapy is uncertain. We analyzed MRD dynamics using next‐generation flow in 201 patients treated in clinical trials with chimeric antigen receptor (CAR) T cells and T‐cell engagers (TCE). Achieving MRD negativity at 10−6 was associated with 89% reduction in the risk of progression and/or death. Survival outcomes were improved in patients with sustained versus transient MRD negativity and were dismal in those who remained MRD positive. The intent‐to‐treat MRD negative rates were higher in patients treated with CAR T cells versus TCE. However, among patients achieving MRD negativity, there were no differences in survival outcomes when stratified according to treatment with CAR T cells versus TCE. In multivariate analysis including the number of prior lines of treatment, International Staging System, cytogenetic risk, extramedullary disease and type of T‐cell redirecting immunotherapy, only the complete remission (CR) and MRD statuses showed independent prognostic value for progression‐free and overall survival. In conclusion, our study shows that deep and sustained MRD negative CR is the most relevant prognostic factor and should be considered as the treatment endpoint in RRMM patients treated with CAR T cells and TCE.