Backgroud: Anaplastic thyroid cancer (ATC) is the most aggressive type of thyroid cancer. This study aimed to identify a long non-cdoing RNA (lncRNA) as a specific biomarker associated with ATC, and further investigated its biological function and molecular mechanism underlying regulation of malignancy in ATC.Methods: We searched for lncRNAs associated with dedifferentiation and screened out specific lncRNAs significantly deregulated in ATC by using transcriptome data of dedifferentiation cancers from Fudan University Shanghai Cancer Center (FUSCC) and the Gene Expression Omnibus (GEO) database. The above lncRNAs were analyzed to identify a useful biomarker in thyroid cancer patients from the FUSCC, GEO and The Cancer Genome Atlas, which was further investigated for its functional roles and molecular mechanism in ATC in vitro.Results: The clinicopathological association analyses revealed that LINC00886 was correlated with thyroid cancer dedifferentiation and significantly suppressed in ATC. In vitro, LINC00886 was confirmed to negatively regulate cell proliferation, colony formation and cell migration and invasion of ATC. LINC00886 physically interacted with protein kinase R (PKR) and affected its stability through ubiquitin/proteasome-dependent degradation pathway in the ATC cell. Decreased PKR caused by LINC00886 downregulation, enhanced the activity of eukaryotic initiation factor 2α (eIF2α) via reducing the phosphorylation of eIF2α and thus promoted protein synthesis to maintain the ATC malignancy. Conclusions: Our findings identify LINC00886 as a novel biomarker of thyroid cancer and suggest that the LINC00886/PKR/eIF2α signaling axis is a potential therapeutic target in ATC.