By combining the results from 52 IUE spectra of the WN5 star HD 50896 we have constructed a photometrically precise, flux-calibrated, mean high-resolution (|$R\approx10^4$|) data set covering the wavelength range 1150–3274Å. We give measurements of fluxes and widths for all detected emission lines and P Cygni profiles; approximately 25 per cent of the flux emitted in the IUE spectral region comes from line emission. Examination of the interstellar lines shows at least five components contributing to the line-of-sight: H I and H II systems at low velocity, a feature at |$\sim-30\text {kms}^{-1}$| (measured with respect to the low-velocity blend), and absorptions at about −75 and −130km s−1. We use a profile-fitting analysis to estimate column densities for all available ions in each velocity system. Depletions found in the low-velocity H I gas are typical of those found in other sightlines, while remaining systems show evidence of at least some grain destruction; the −75km s−1 system, in particular, shows an almost total return of material from grains to the gas phase. We interpret the gas-phase abundances in terms of recent models. By examining high-resolution spectra of a further 15 early-type stars seen close to 50896 in the plane of the sky (and mostly members of the loose cluster Cr 121) we are able to discuss the geometry and physical nature of the various absorption systems observed. We attribute the strong lines of highly ionized species seen towards 50896 to an H II region local to that star, and calculate simple models to demonstrate that the observed columns can be reproduced. The results are consistent with the view that at least some WR stars have far-UV radiation fields characterized by high effective temperatures (|$\sim65\times 10^3\text K$|). The −30km s−1 system is interpreted as arising in the wind-blown bubble S308 associated with 50896, while the higher velocity systems (seen towards many of the field stars in addition to 50896) are discussed in terms of the multiple shock structure expected from a single old supernova remnant. We argue that this SNR is at ∼0.8 kpc, and is therefore unlikely to be associated with a mooted neutron star companion to 50896, for which we derive a distance of 2–3 kpc.