Lymphocyte‐specific protein 1 (
LSP
1) has been reported to regulate cell biology in several human cancers including lymphoma and breast cancer. However, the functions of
LSP
1 in human hepatocellular carcinoma (
HCC
) are still unknown. In this study, we found that
LSP
1 expression was downregulated in
HCC
tissues and cell lines, and lower
LSP
1 expression was correlated with poor clinicopathological features including large tumor size, high Edmondson–Steiner grading and advanced tumor–node–metastasis (
TNM
) stage. Additionally, we demonstrated that patients with high
LSP
1 expression had significantly better overall survival and disease‐free survival. Moreover,
LSP
1 was found to be an independent factor for predicting the prognosis of
HCC
patients.
In vitro
and
in vivo
assays showed that overexpressing
LSP
1 inhibited
HCC
growth by inducing both apoptosis and growth arrest. Mechanistically, we found that expression of phosphorylated extracellular regulated protein kinases 1 and 2 (
ERK
1/2) was downregulated after
LSP
1 overexpression, indicating
LSP
1 could suppress
HCC
growth by inhibiting the
ERK
pathway in
HCC
cells. Taken together, these results indicate that
LSP
1 may serve as a prognostic marker and a potential therapeutic target in human
HCC
.