This study documents thinning and retreat of the South Greenland ice margin and discusses possible reasons in the light of mass‐balance and change of dynamic conditions. Analyses of satellite images have shown that the glacier tongue of Sermilik glacier disintegrated within the past 15 years. Furthermore, the observed thinning close to the Sermilik glacier front was as much as 120 m water equivalent during this period. This figure was derived by comparing surface elevation data from a digital elevation model (1985) and laser altimeter measurements from the year 2000, showing surface elevation changes along a flow line of Sermilik glacier. Mass‐balance data from in situ measurements performed at a centre flow line of the glacier are presented. These data are compared to results from remote sensing analyses of the study area. Net ablation reconstruction over the last 41 years from positive‐degree‐day modelling, at various locations along the Sermilik glacier massbalance transect, shows an increase during the past decades. These analyses indicate that only 55% of the total thinning in this area can be explained by mass‐balance changes. The remaining 45% of the thinning is attributed to changes in the dynamic behaviour of the glacier, such as an increase of creep towards the end of the twentieth century. The significant thinning along the Qagssimiut lobe can also be explained as a combination of mass‐balance changes and changes in ice dynamic behaviour.