In this paper, we study the well‐posedness of the degenerate differential equations with fractional derivative Dαfalse(Mufalse)false(tfalse)=Aufalse(tfalse)+ffalse(tfalse),false(0≤t≤2πfalse) in Lebesgue–Bochner spaces Lpfalse(double-struckT;Xfalse), periodic Besov spaces Bp,qsfalse(double-struckT;Xfalse) and periodic Triebel–Lizorkin spaces Fp,qsfalse(double-struckT;Xfalse), where A and M are closed linear operators in a complex Banach space X satisfying D(A)⊂D(M), α>0 and Dα is the fractional derivative in the sense of Weyl. Using known operator‐valued Fourier multiplier results, we completely characterize the well‐posedness of this problem in the above three function spaces by the R‐bounedness (or the norm boundedness) of the M‐resolvent of A.