Several human diseases including viral infections activate the unfolded protein response (UPR) due to abnormal accumulation of unfolded/misfolded proteins. However, UPR modulation and its functional relevance in HIV‐1 infection lack comprehensive elucidation. This study reveals that HIV‐1 activates IRE1, PERK, and ATF6 signaling pathways of UPR. The knockdown of PERK and ATF6 reduces HIV‐1 long terminal repeat (LTR)‐driven gene expression, whereas the endoplasmic reticulum (ER) chaperone HSPA5 prevents proteasomal degradation of HIV‐1 p24 through its chaperone activity. Interestingly, overstimulation of UPR by a chemical inducer leads to anti‐HIV activity through an enhanced type‐1 interferon response. Also, treatment with a chemical ER stress inhibitor reduces HIV‐1 replication. These findings suggest that an optimal UPR activation is crucial for effective viral replication, as either overstimulating UPR or inhibiting ER stress leads to viral suppression.