Synovitis, the chronic inflammation of the synovial membranes, is a hallmark of rheumatoid arthritis, a chronic disease with profound impact on human health. Recently, interleukin‐35 (IL‐35), a new member of the IL‐12 family, was identified as an anti‐inflammatory and immunosuppressive cytokine and was shown to ameliorate collagen‐induced arthritis (CIA) in mice. However, the mechanism by which IL‐35 alleviates CIA remains unknown. In this study, we investigated the effect of IL‐35 on the CIA microenvironment and, specifically, the tumor necrosis factor alpha (TNF‐α)‐induced macrophage inflammatory response and apoptosis of fibroblast‐like synoviocytes (FLSs). Firstly, using RT‐PCR, western blot, and flow cytometry, we found that IL‐35 suppressed TNF‐α‐induced inflammatory responses by down‐regulating iNOS and COX‐2 in peripheral blood monocyte‐derived macrophages. IL‐35 also activated alternative M2 macrophage polarization, as determined by evaluation of CCR7 and CD206 expression. Moreover, we showed that IL‐35 enhanced TNF‐α‐induced FLS apoptosis. Using a panel of immunohistochemical and immunofluorescence analyses in a CIA model established in 18 DBA/1J mice, we demonstrated that IL‐35 promotes synoviocyte apoptosis and alternative activation of macrophages to alleviate arthritis in vivo. Taken together, our results show that IL‐35 promotes TNF‐α‐induced FLS apoptosis and modulates M2 macrophage polarization to ameliorate CIA inflammation both in vitro and in vivo.