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Ultrathin epitaxial films of ferromagnetic insulators (FMIs) with Curie temperatures near room temperature are critically needed for use in dissipationless quantum computation and spintronic devices. However, such materials are extremely rare. Here, a room‐temperature FMI is achieved in ultrathin La_0.9Ba_0.1MnO₃films grown on SrTiO₃substrates via an interface proximity effect. Detailed scanning transmission electron microscopy images clearly demonstrate that MnO₆octahedral rotations in La_0.9Ba_0.1MnO₃close to the interface are strongly suppressed. As determined from in situ X‐ray photoemission spectroscopy, OK‐edge X‐ray absorption spectroscopy, and density functional theory, the realization of the FMI state arises from a reduction of Mn e_gbandwidth caused by the quenched MnO₆octahedral rotations. The emerging FMI state in La_0.9Ba_0.1MnO₃together with necessary coherent interface achieved with the perovskite substrate gives very high potential for future high performance electronic devices.