Growing evidence has revealed that circular RNAs (circRNA) play critical roles in cancer progression. Here, we examined the function of a novel circRNA, Circ_0005795, in basal cell carcinoma (BCC) and explored the possible molecular mechanism. Nodular BCC and adjacent non-tumor tissues derived from 30 patients and 2 BCC cell lines were applied to analyze gene expression. Circ_0005795 loss- and gain-of-function were constructed to investigate BCC progression. Nuclear and cytoplasmic fractionation and luciferase assay were carried out to determine cellular localization and molecular interaction of Circ_0005795. Circ_0005795 expression was significantly elevated in BCC tissues and cells. Knockdown of Circ_0005795 dramatically reduced cell viability, colony formation, and anti-apoptotic protein levels, while increased caspase-3 activity. Circ_0005795 located in cytoplasm, which exerted its tumor-promoting effect through targeting and sponging miR-1231 in BCC cells. In summary, Circ_0005795 works as an oncogene in BCC, which might be used as a promising biomarker and a potential therapeutic target for BCC diagnosis and treatment.