"I want you to hear it straight from me: Today, I'm suspending our campaign for president," Warren said in a call to her campaign staff on Thursday morning.
Speaking to reporters outside her home in Cambridge, Massachusetts later, Warren said she will "stay in the fight," despite her exit from the nomination battle.
The announcement came two days after Democratic primary's "Super Tuesday," in which Warren won no states and lost her home-state Massachusetts to former U.S. Vice President Joe Biden.
A moderate political veteran, Biden won 10 of 14 states voting on Tuesday. Senator Bernie Sanders of Vermont, a progressive, finished second by wining the other four.
Biden and Sanders are the last two viable Democratic candidates standing this election cycle. U.S. Congresswoman Tulsi Gabbard of Hawaii is still in the race but has trailed well behind them.
Warren's ideological stance aligns more closely with Sanders, but she said she will not be making an endorsement right away. "I need some space around this and want to take a little time to think a little more."
Warren, 70, announced her White House bid in February 2019 and had been considered a top-tier candidate ever since.
The former Harvard University law professor and a second-term senator had campaigned on progressive proposals like free college, canceling student loans, and a Medicare-for-All health care system, and surged to the top of the polls in late 2019.
Sanders tweeted Thursday that Warren "has run an extraordinary campaign of ideas."
"Without her, the progressive movement would not be nearly as strong as it is today," Sanders wrote.
Biden, in his tweet, said they needed Warren's voice in the race and that they "need her continued work in the Senate."
Sitting President Donald Trump, a Republican, also reacted to Warren's departure, claiming she was dropping out "THREE DAYS TOO LATE."
"She cost Crazy Bernie, at least Massachusetts, Minnesota and Texas. Probably cost him the nomination!" Trump wrote on Twitter, referring to the Super Tuesday primary.
The next Democratic primaries will take place on March 10 for voters of six states to cast ballots for their preferred presidential candidate this year.
The 2020 U.S. presidential election will be held on Nov. 3.