Hepatocellular carcinoma (HCC) develops almost entirely in the presence of chronic in-flammation. Chronic hepatitis B virus (HBV) infection with recurrent immune‐mediated liver damage ultimately leads to cirrhosis and HCC. It is widely accepted that HBV infection induces the dysfunction of the innate and adaptive immune responses that engage various immune cells. Natural killer (NK) cells are associated with early antiviral and antitumor properties. On the other hand, inflammatory cells release various cytokines and chemokines that may promote HCC tumorigene-sis. Moreover, immunosuppressive cells such as regulatory T cells (Treg) and myeloid‐derived suppressive cells play a critical role in hepatocarcinogenesis. HBV‐specific CD8+ T cells have been iden-tified as pivotal players in antiviral responses, whilst extremely activated CD8+ T cells induce enor-mous inflammatory responses, and chronic inflammation can facilitate hepatocarcinogenesis. Controlling and maintaining the balance in the immune system is an important aspect in the management of HBV‐related HCC. We conducted a review of the current knowledge on the immunopath-ogenesis of HBV‐induced inflammation and the role of such immune activation in the tumorigenesis of HCC based on the recent studies on innate and adaptive immune cell dysfunction in HBV‐related HCC.