Environmental factors have significant effects on the development of autoimmune diseases. The ligand‐activated transcription factor aryl hydrocarbon receptor (AHR) is controlled by endogenous and environmental small molecules. Hence, AHR provides a molecular pathway by which endogenous and environmental signals can influence the immune response and the development of autoimmune diseases. AHR also provides a target for therapeutic intervention in immune‐mediated disorders. In this review, we discuss the role of AHR in the regulation of T‐cell differentiation and autoimmunity.