Aggressive, high‐risk neuroblastoma (NB) exhibits an immature differentiation state, profound epigenetic dysregulation and high telomerase activity. It has been suggested that aggressive NB may be treatable by inducing differentiation whereas therapeutic targeting of telomerase is under investigation for multiple cancer types. While epigenetic regulation of the telomerase reverse transcriptase (TERT) promoter has been described in high‐risk NB, the exact molecular mechanisms are still not completely understood. Here we used quantitative real‐time polymerase chain reaction (PCR), chromatin immunoprecipitation qPCR, quantitative telomeric repeat amplification protocol, and immunoblot techniques to investigate epigenetic regulation of TERT in wild‐type and genetically modified NB cell lines. We demonstrated that TERT expression is reduced during 13‐cis retinoic acid‐induced NB differentiation and that this inversely correlated with increased expression of AT‐rich interaction domain 1A (ARID1A), a subunit of the SWItch/sucrose nonfermentable chromatin remodeling complex. We showed that ARID1A directly caused suppression of TERT and was reliant on DNA binding and co‐occupancy of the TERT promoter by the SIN3 transcription regulator family member A (SIN3A) repressor complex allowing NB differentiation to proceed. Finally, using data from NB patient cohorts, we reported a significant correlation between low ARID1A expression, elevated expression of TERT, and poorly differentiated, high‐risk NB. These results provide insights into a key epigenetic pathway responsible for modulating TERT‐driven NB progression, which could represent a target for therapeutic intervention.