High‐pressure X‐ray and optical studies of β‐FeSi2 were carried out up to 60.7 GPa and 5 GPa, respectively. The bulk modulus was determined to be (243.46 ± 7.14) GPa by the Birch‐Murnaghan equation. A new phase appeared at about 20 GPa. The pressure coefficient of the direct bandgap was determined to be +15.9 meV/GPa by the high‐pressure optical absorption experiment. Consequently the deformation potential for the direct bandgap was determined to be –3.87 eV. The deformation potential for the direct gap at the Y point was obtained to be –2.4 eV using a FLAPW (full‐potential linearized augmented plane wave) method.