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Perennial ryegrass is an important turf and forage grass in temperate regions worldwide. Limited genetic gains have been made with current breeding strategies compared with other grass crops, such as rice and maize, which benefit from Filial 1 (F1) hybrid breeding. One of the largest constraints on hybrid breeding in ryegrass is self‐incompatibility preventing inbreeding, as homozygous parental lines are required to develop hybrids with maximal hybrid vigour. Obligate outcrossing in ryegrass has resulted in cultivars with high levels of heterozygosity, lacking trait uniformity across the population. A naturally occurring self‐fertile (SF) locus that overcomes the self‐incompatibility system has been identified in a European perennial ryegrass population. This study crossed the SF locus into an elite cultivar, producing a self‐compatible population that was inbred for several generations. Genotyping‐by‐sequencing (GBS) was used to assess the population structure and degree of inbreeding in the self‐compatible population. Phenotypic analysis indicated that increased homozygosity did not necessarily affect growth and performance. This study concludes that self‐compatible ryegrass is a promising tool for hybrid breeding and agronomic improvement of perennial ryegrass. [ABSTRACT FROM AUTHOR]