The 38-year-old shared a long video message for his fans on his social media handles thanking them for their love and support throughout his career.
The Delhi-born cricketer made his international debut against Australia during an ODI in Visakhapatnam but didn't have a memorable beginning to his career getting dismissed for a two-ball duck.
However, after initial failures, Dhawan made his return to the Indian team in 2013 and sealed his place across all three formats through remarkable performances.
"I always had one goal in mind that was to play for India and I achieved it thanks to a lot of people. First of all my family, my childhood coach Tarak Sinha and Madan Sharma, under their guidance, I learnt cricket. Then my entire team with whom I played for years, got another family, fame and everyone's love and support.
As it's said that to move ahead in the story you need to flip over the pages. Hence, I'm also doing that, I'm announcing my retirement from international and domestic cricket," said Dhawan in the video.
"And now when I'm bidding adieu to my cricketing journey, I have the satisfaction that I played a lot for my country. I'm really thankful to the BCCI (Board of Control for Cricket in India) and DDCA (Delhi & District Cricket Association) for giving me this opportunity and all of my fans for their love and support. I just say this to myself that don't be sad that you won't play for your country again but always be happy that you played for your country.
And it's the biggest achievement for me that I played," he added.