Sterol regulatory element binding protein (SREBP) cleavage‐activating protein (SCAP) is a cholesterol sensor that plays a critical role in regulating intracellular cholesterol levels, but the association between SCAP and foam cell formation in vascular smooth muscle cells (VSMCs) is poorly understood. Using tissue‐specific SCAP knockdown in apolipoprotein E (ApoE)−/− mice, we sought to search the mechanism through which SCAP signaling affects VSMC foam cell development. VSMC‐specific SCAP knockdown mice were generated by Cre/LoxP‐mediated gene targeting in ApoE−/− mice. Breeding sCAPflox/flox mice with SM22α‐Cre mice resulted in no viable offspring with the homozygote SM22‐Cre: SCAPflox/flox genotype due to embryonic lethality. We found that the heterozygote SM22α‐Cre:SCAPflox/+: ApoE−/− mice fed a Western diet for 12 wk had significantly fewer atherosclerotic plaques in their aortas than the control mice due to reduced cholesterol uptake and synthesis. Furthermore, we found that autophagy in VSMCs was increased in SM22α‐Cre:SCAPflox/+:ApoE−/− mice. Similarly, in vitro, SCAP knockdown in human coronary artery VSMCs by RNA interference reduced lipid accumulation and increased autophagy under LDL cholesterol loading. SCAP knockdown in VSMCs reduced oxidative stress and increased AMPK phosphorylation, which contributed to the up‐regulation of autophagy in vivo and in vitro. VSMC‐specific SCAP knockdown decreased the lipid accumulation and intracellular oxidative stress, increased excessive lipid clearance by enhancing lipid autophagy mediated by the reactive oxygen species/AMPK pathway in VSMCs, and consequently alleviated atherosclerosis plaque formation.—Li, D., Chen, A., Lan, T., Zou, Y., Zhao, L., Yang, P., Qu, H., Wei, L., Varghese, Z., Moorhead, J. F., Chen, Y., Ruan, X. Z. SCAP knockdown in vascular smooth muscle cells alleviates atherosclerosis plaque formation via up‐regulating autophagy in ApoE−/− mice. FASEB J. 33, 3437–3450 (2019). http://www.fasebj.org