Summary 1. Climate change impacts have been observed on individual species and species subsets; however, it remains to be seen whether there are systematic, coherent assemblage-wide responses to climate change that could be used as a representative indicator of changing biological state. 2. European shelf seas are warming faster than the adjacent land masses and faster than the global average. We explore the year-by-year distributional response of North Sea bottom-dwelling (demersal) fishes to temperature change over the 25 years from 1980 to 2004. The centres of latitudinal and depth distributions of 28 fishes were estimated from species-abundance‐location data collected on an annual fish monitoring survey. 3. Individual species responses were aggregated into 19 assemblages reflecting physiology (thermal preference and range), ecology (body size and abundance-occupancy patterns), biogeography (northern, southern and presence of range boundaries), and susceptibility to human impact (fishery target, bycatch and non-target species). 4. North Sea winter bottom temperature has increased by 1·6 ° C over 25 years, with a 1 ° C increase in 1988‐1989 alone. During this period, the whole demersal fish assemblage deepened by ~3·6 m decade ‐1 and the deepening was coherent for most assemblages. 5. The latitudinal response to warming was heterogeneous, and reflects (i) a northward shift in the mean latitude of abundant, widespread thermal specialists, and (ii) the southward shift of relatively small, abundant southerly species with limited occupancy and a northern range boundary in the North Sea. 6. Synthesis and applications. The deepening of North Sea bottom-dwelling fishes in response to climate change is the marine analogue of the upward movement of terrestrial species to higher altitudes. The assemblage-level depth responses, and both latitudinal responses, covary with temperature and environmental variability in a manner diagnostic of a climate change impact. The deepening of the demersal fish assemblage in response to temperature could be used as a biotic indicator of the effects of climate change in the North Sea and other semi-enclosed seas.