The primary term Kentucky Senator completed in fifth spot in the Iowa council with only 4.5% of the vote.
In an announcement, he said: "It's been a fantastic honor to run a principled battle for the White House.
"Today, I will end where I started, prepared and willing to battle for the reason for freedom."
Mr Paul was resolved to enhance the Republican Party's prominence among more youthful voters and minorities.
In any case, he neglected to win over critical backing other than from a little gathering of libertarian Republicans who had beforehand upheld the White House offers made by his dad, Ron Paul.
He was chosen amid the tea party-driven influx of 2010 and frequently wound up inconsistent with gathering pioneers.
The 52-year-old ophthalmologist is currently anticipated that would turn his consideration regarding his Senate re-decision crusade, where he is favored to win.
He has said he will keep battling for constrained government, criminal equity change and "sensible" remote approach.
Mr Paul turns into the second GOP possibility to drop out of the assignment race in the wake of the lead-off Iowa assembly.
Previous Arkansas Governor Mike Huckabee, who won the Iowa council in 2008, additionally suspended his battle in the wake of securing only 2% of the vote.
Texas Senator Ted Cruz won the state with 27.7% of the vote, with Donald Trump in second on 24.3%.
On the Democratic side, previous Maryland Governor Martin O'Malley dropped out of the race in the wake of attempting to increase any footing against adversaries Hillary Clinton and Bernie Sanders and increasing only 0.6% of Iowa's votes.
Mr Paul's withdrawal leaves 10 Republican applicants in the White House race.
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