The core Hippo pathway module consists of a tumor‐suppressive kinase cascade that inhibits the transcriptional coactivators Yes‐associated protein (YAP) and WW domain‐containing transcription regulator protein 1 (WWTR1; also known as TAZ). When the Hippo pathway is downregulated, as often occurs in breast cancer, YAP/TAZ activity is induced. To elaborate the roles of TAZ in triple‐negative breast cancer (TNBC), we depleted Taz in murine TNBC 4T1 cells, using either CRISPR/Cas9 or small hairpin RNA (shRNA). TAZ‐depleted cells and their controls, harboring wild‐type levels of TAZ, were orthotopically injected into the mammary fat pads of syngeneic BALB/c female mice, and mice were monitored for tumor growth. TAZ depletion resulted in smaller tumors compared to the tumors generated by control cells, in line with the notion that TAZ functions as an oncogene in breast cancer. Tumors, as well as their corresponding in vitro cultured cells, were then subjected to gene expression profiling by RNA sequencing (RNA‐seq). Interestingly, pathway analysis of the RNA‐seq data indicated a TAZ‐dependent enrichment of ‘Inflammatory Response', a pathway correlated with TAZ expression levels also in human breast cancer tumors. Specifically, the RNA‐seq analysis predicted a significant depletion of regulatory T cells (Tregs) in TAZ‐deficient tumors, which was experimentally validated by the staining of tumor sections and by quantitative cytometry by time of flight (CyTOF). Strikingly, the differences in tumor size were completely abolished in immune‐deficient mice, demonstrating that the immune‐modulatory capacity of TAZ is critical for its oncogenic activity in this setting. Cytokine array analysis of conditioned medium from cultured cells revealed that TAZ increased the abundance of a small group of cytokines, including plasminogen activator inhibitor 1 (Serpin E1; also known as PAI‐1), CCN family member 4 (CCN4; also known as WISP‐1) and interleukin‐23 (IL‐23), suggesting a potential mechanistic explanation for its in vivo immunomodulatory effect. Together, our results imply that TAZ functions in a non‐cell‐autonomous manner to modify the tumor immune microenvironment and dampen the anti‐tumor immune response, thereby facilitating tumor growth.