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Software product lines (SPL) and Agile practices have emerged as new paradigms for developing software. Both approaches share common goals; such as improving productivity, reducing time to market, decreasing development costs and increasing customer satisfaction. These common goals provide the motivation for this research. We believe that integrating Agile practices into SPL can bring a balance between agility and formalism. However, there has been a little research on such integration. We have been researching the potential of integrating Agile approaches in one of the key SPL process areas, product derivation (PD). In this paper, we present an outline of our Agile process model for PD that was developed through industry‐based case study research. Copyright © 2010 John Wiley & Sons, Ltd.