Leukocyte‐associated Ig‐like receptor‐1 (LAIR‐1) belongs to the growing family of immunoreceptor tyrosine‐based inhibitory motif‐bearing receptors and is expressed on the majority of peripheral mononuclear cells, including NK cells, T cells, B cells, monocytes, and dendritic cells. In this study, we investigated the distribution and the capacity of LAIR‐1 to function as an inhibitory receptor on human B cells. LAIR‐1 is expressed from early on during B cell differentiation, but is absent on approximately half of the memory B cells, and all germinal center B cells, plasmablasts, and terminally differentiated plasma cells. In vitro stimulation of naive B cells via the B cell receptor (BCR) or CD40, triggering proliferation and differentiation into Ig‐producing plasma cells, is accompanied by loss of LAIR‐1 expression. We previously reported that LAIR‐1 can function as an inhibitory receptor on NK cells and T cells. Here, we demonstrate that it can also function as a negative regulator of BCR‐mediated signaling, since simultaneous cross‐linking of LAIR‐1 and the BCR reduces the increase of intracellular Ca2+ evoked by BCR ligation. Taken together, this suggests that the inhibitory mechanism of LAIR‐1 is functional in multiple components of the hematopoietic system.