Circular RNAs (circRNAs) play significant roles in the tumorigenesis and progression of various cancers, including lung adenocarcinoma (LAC). However, their underlying biological functions in LAC remain unclear. Here, we investigated the tumor suppressor role of the newly identified circRNA, circ_0129047, in LAC tumorigenesis and progression. The expression levels of circ_0129047, microRNA (miR)-1206, and bone morphogenetic protein receptor type 2 (BMPR2) mRNA in LAC cells and tissues were monitored using reverse transcription-quantitative polymerase chain reaction. Dual-luciferase reporter, RNA immunoprecipitation, and RNA pull-down assays were used to confirm the targeting relationships among circ_0129047, miR-1206, and BMPR2 mRNA. Functional experiments for A549 and PC9 cells were performed using cell counting kit-8, bromodeoxyuridine enzyme-linked immunosorbent, caspase-3 activity, cell adhesion, wound healing, and transwell assays. Circ_0129047 expression levels were reduced in LAC cells and tissues. Mechanistically, we discovered that circ_0129047 could sponge miR-1206, and miR-1206 could directly target BMPR2. In addition, circ_0129047 or BMPR2 knockdown facilitated the viability, proliferation, adhesion, migration, and invasion, while inhibiting the apoptosis of LAC cells. Furthermore, the inhibitory effects of circ_0129047 or BMPR2 overexpression on the malignant phenotype of LAC cells could be reversed by the overexpression of miR-1206. In conclusion, circ _0129047 was found to play a tumor suppressive role in LAC progression; it upregulated BMPR2 expression to inhibit LAC progression by sponging miR-1206.