Hypoxia inducible factor‐1α (HIF‐1α) has a central role in cellular oxygen‐sensing, and its overexpression in many types of cancer is considered important in tumor progression. Thus, targeting HIF‐1α production and activity has been of great therapeutic interest. In normoxic conditions, HIF‐1α is hydroxylated by oxygen‐dependent prolyl‐hydroxylases, which require ferrous iron for its activity. The tumor suppressor protein von Hippel Lindau binds to the hydroxylated HIF‐1α, which is then ubiquitinated and degraded by proteasomes. We focused on the physiological degradation machinery of HIF‐1α mediated by prolyl hydroxylases. Previously, we identified a small molecule, LS081, that is capable of stimulating iron uptake into cells. In the present study, we aimed to inhibit the expression of HIF‐1α protein and growth of hepatocellular carcinoma by using the iron‐facilitating activity of LS081. In the human hepatocellular carcinoma cell lines Hep3B and HepG2, a combination of LS081 and ferric ammonium citrate (LS081/FeAC) inhibited HIF‐1α protein expression but did not inhibit HIF‐1α mRNA expression. A mutated HIF‐1α protein, which has proline residues that were replaced with alanine and transfected into HEK293 cells, was not affected by the combination of LS081 and FeAC. Furthermore, the iron‐facilitating activity of LS081 resulted in Hep3B and HepG2 growth inhibition in vitro and in vivo. These results indicate that the iron‐facilitating activity of LS081 inhibits HIF‐1α expression through prolyl‐hydroxylation of HIF‐1α and might have a therapeutic effect in the treatment of hepatocellular carcinoma. (Cancer Sci 2012; 103: 767–774)