The 36-year-old, who took 229 wickets in 64 Tests after making a memorable debut against West Indies in 2013, announced his decision in a video posted on social media on the anniversary of his first Test appearance.
"Let's end this 13-year journey here today," Shami said.
"I made my debut today, and today I am taking retirement. I am leaving this, but I will continue to play white-ball cricket, whether it is IPL or domestic.
"If it is needed for fitness, I will continue to play days cricket. So, this was the journey so far. I started it today, and I am ending it today."
His final Test appearance came in the World Test Championship final against Australia in 2023, but he continued to play limited-overs cricket before injuries and fitness concerns hampered his appearances for India.
Shami, India's all-time leading wicket-taker in 50-over World Cups with 55 wickets, last featured for India in a one-day international against New Zealand last year and in a Twenty20 match against England in February 2025.
He currently represents Bengal in domestic cricket and plays for Lucknow Super Giants in the Indian Premier League.