CD95 ligand expression has been observed in various malignancies. Studying the CD95 ligand (CD95L) and receptor (CD95) system in eight non‐malignant mammary tissues and 40 breast cancer tissues, mRNA and protein expression was determined by quantitative reverse transcriptase‐polymerase chain reaction (RT‐PCR) and immunofluorescence. mRNA levels of CD95L correlated positively ( r=0·90; p< 0·01) and transmembrane CD95 inversely ( r=−0·88; p< 0·01) with histopathological grading of the breast tumours: CD95L mRNA levels were low in adenomas, but increased by 20‐fold in grade I, 120‐fold in grade II, and 310‐fold in grade III breast cancer. In contrast, CD95 mRNA levels were low in high‐grade carcinomas, but high in benign mammary tissues. Since CD95L acts as an efficient inducer of apoptosis in CD95+ cells, apoptotic cells were identified on the tissue sections. Tumour‐infiltrating lymphocytes and stromal cells in close proximity to CD95L‐expressing breast cancer underwent apoptosis. As a functional test, CD95+ target cells were cultured on breast cancer tissue sections. The target cells underwent apoptosis when cultured on breast cancer sections, but could be rescued when CD95L was specifically blocked by a CD95–Fc fusion molecule. The data suggest an inverse regulation of CD95 ligand and receptor expression during dedifferentiation of breast cancer. Killing of bystander cells by the CD95L‐expressing breast tumour could be involved in tissue invasion. Copyright © 1999 John Wiley & Sons, Ltd.