ABSTRACT Prostate cancer (PCa) is one of the leading causes of cancer death among men worldwide. Circular RNAs (circRNAs) have been implicated in the pathogenesis of PCa. However, the precise action of circ_0001326 in PCa malignant progression is still unknown. The levels of circ_0001326, miR‐577 and voltage dependent anion channel 1 (VDAC1) were determined by quantitative real‐time polymerase chain reaction (qRT‐PCR) and western blot. Cell proliferation, colony formation, apoptosis, migration and invasion were evaluated by the Cell Counting Kit‐8 (CCK‐8), EdU staining, colony formation, flow cytometry, wound‐healing and transwell assays, respectively. Targeted relationships among circ_0001326, miR‐577 and VDAC1 were confirmed by dual‐luciferase reporter assays. Xenograft experiments were performed to detect the role of circ_0001326 in tumor growth. Our data revealed that circ_0001326 was overexpressed in PCa tissues and cells. Circ_0001326 depletion repressed PCa cell proliferation, migration, and invasion and enhanced apoptosis in vitro, as well as hampered tumor growth in vivo. Mechanistically, circ_0001326 directly targeted miR‐577, and VDAC1 was directly targeted and suppressed by miR‐577. Moreover, the effects of circ_0001326 knockdown on PCa cell functional behaviors were mediated by miR‐577. VDAC1 silencing phenocopied miR‐577 overexpression in regulating PCa cell functional behaviors in vitro. Furthermore, circ_0001326 regulated VDAC1 expression through sponging miR‐577. Our findings showed that circ_0001326 regulated PCa cell functional behaviors at least partly through targeting the miR‐577/VDAC1 axis.