In urothelial bladder cancer (UBC), risk stratification remains an important unmet need. Limitless self‐renewal, governed by
TERT
expression and telomerase activation, is crucial for cancer progression. Thus, telomerase activation through the interplay of mutations (
TERT
p
Mut
) and epigenetic alterations in the
TERT
promoter may provide further insight into UBC behavior. Here, we investigated the combined effect of
TERT
p
Mut
and the
TERT
Hypermethylated Oncological Region (THOR) status on telomerase activation and patient outcome in a UBC international cohort (
n
= 237). We verified that
TER
Tp
Mut
were frequent (76.8%) and present in all stages and grades of UBC. Hypermethylation of THOR was associated with higher
TERT
expression and higher‐risk disease in nonmuscle invasive bladder cancers (NMIBC).
TERT
p
Mut
alone predicted disease recurrence (HR: 3.18, 95%CI 1.84 to 5.51,
p
< 0.0001) but not progression in NMIBC. Combined THOR
high
/
TER
Tp
Mut
increased the risk of disease recurrence (HR 5.12,
p
< 0.0001) and progression (HR 3.92,
p
= 0.025). Increased THOR hypermethylation doubled the risk of stage progression of both
TERT
p
wt
and
TERT
p
Mut
NMIBC. These results highlight that both mechanisms are common and coexist in bladder cancer and while
TERT
p
Mut
is an early event in bladder carcinogenesis THOR hypermethylation is a dynamic process that contributes to disease progression. While the absence of alterations comprises an extremely indolent phenotype, the combined genetic and epigenetic alterations of
TERT
bring additional prognostic value in NMIBC and provide a novel insight into telomere biology in cancer.