In 1985, she played The Red Queen to Carol Channing's White Queen in an all-star television musical adaptation of Lewis Carroll's Alice in Wonderland. The same year, the producers of It's a Living made the relatively unheard-of decision to resume production of the series, by then three years off the air, for first-run syndication, and Jillian was contractually obligated to return to the series.
Before resuming production on It's a Living in 1985, Jillian (then 35) made headlines when she was diagnosed with breast cancer, and she became a vocal advocate for cancer research and prevention. Leaving It's a Living after the 1985-86 season, she focused on beating her cancer, with treatment including a double mastectomy. Her suffering with cancer was chronicled in the top-rated made-for-TV film, The Ann Jillian Story (1988), in which Jillian portrayed herself. The film required two years to be produced, due to conflicts in tone, the degree of medical information included, and the relatively limited, realistic reaction portrayed by Jillian and her stage husband, before and after her surgery. Jillian received her third Emmy Award nomination, for Outstanding Lead Actress in a Miniseries or a Special, and won a 1989 Golden Globe Award for Best Performance by an Actress in a Mini-Series or Motion Picture Made for TV.