Cadmium (Cd) at low concentrations has a potential to promote cell proliferation. However, the molecular mechanisms of Cd‐induced proliferation are not well understood. Here, we reported that Cd (0–500 nM) significantly promoted the proliferation of HepG2 cells as demonstrated by elevated cell viability, more EdU‐positive cells and increased gene expression of KI‐67 and COX‐2. Meanwhile, the gene expression of DNA methyltransferases was found to be elevated while that of tumor suppressor genes DAPK1 and RASSF1A were decreased under Cd exposure. Correspondingly, the methylation level of promoters in DAPK1 and RASSF1A were increased. Specifically, the CpG sites at −461 (Chr3:50, 374, 481) of RASSF1A promoter, and that at −260 (Chr9:90, 113, 207), −239 (Chr9:90, 113, 228), and −68 (Chr9:90, 113, 399) of DAPK1 promoter, were significantly hypermethylated. Moreover, 5‐azacytidine (an inhibitor of DNA methyltransferase) partly impaired Cd‐induced promoter hypermethylation of RASSF1A and DAPK1 genes, increased their expressions and slowed down Cd‐induced cell proliferation, suggesting that DNA methylation play an essential part in Cd‐boosted proliferation. The study showed that Cd caused promoter hypermethylation of RASSF1A and DAPK1, decreasing their expression and leading to higher level of cell proliferation. Furthermore, Cd at low concentrations could influence DNA methylation, which may serve as the proliferative mechanism of Cd.