“Today, I am announcing my retirement from T20 internationals,” Mushfiqur, 35, said in statement on social media.
“I will proudly continue to represent Bangladesh in Test and ODI formats. I am hopeful that I can bring success for our nation in these two formats,” he added.
Mushfiqur added that he would continue to take part in the Bangladesh Premier League and other Twenty20 franchise tournaments.
Mushfiqur’s announcement came after Bangladesh lost their Group B matches in the Asia Cup against Afghanistan and Sri Lanka in United Arab Emirates, in which he contributed only five runs.
It was his comeback tournament having missed the previous two series against the West Indies and Zimbabwe.
He played in 102 Twenty20 matches for Bangladesh and scored 1,500 runs at 19.48. His captained for 23 of those matches, leading Bangladesh to eight wins.
Mushfiqur is the second senior Bangladeshi cricketer to retire from Twenty20s in recent months after Tamim Iqbal.
Bangladesh have won just two of 12 matches in the shortest format since T20 World Cup last year.