A novel phosphorus‐containing silicone flame retardant (PDPSI) was prepared by Mannish reaction, and a series of PDPSI/PET composites were prepared by melt blending method. The nuclear magnetic resonance (1H NMR), Fourier transformation infrared (FTIR), and the thermogravimetric analyzer (TGA) results indicated that PDPSI showed network structure and owned good thermal stability, with the char residue of 62.2% at 800°C. The flame retardancy of PDPSI/PET composites was characterized by limiting oxygen index (LOI), vertical burning tests (UL‐94), and cone calorimeter (CCT). The results revealed that the addition amount of PDPSI was 5%, the LOI value of PDPSI/PET composites increased to 27.3%, and UL‐94 test passed V‐0 rating. When the PDPSI loading was 3%, PET composites showed excellent flame retardancy and smoke suppression, with a decrease in the peak heat release rate (PHRR) by 71.19% and the total smoke release (TSP) reduced from 14.4 to 11.1m2. The scanning electron microscopy (SEM) and FTIR results of char residue demonstrated that the flame‐retardant mechanism of PDPSI was solid phase flame retardant. PDPSI catalyzed the aromatization reaction of PET to promote the formation of a dense and continuous carbon layer, finally improving the flame retardancy and smoke suppression properties of PET.