Hasselbeck, whose last show will be at the end of December, said she wants to spend more time with her family, including her three young children.
"They need the best of me. Not the rest of me," said Elisabeth, who joined Steve Doocy and Brian Kilmeade in Sept. 2013 after almost a decade on ABC's "The View."
She joked that she'll be taking a new morning position: "Chief Breakfast Officer" as she sends her children off to school each day.
Hasselbeck praised Fox News Chairman & CEO Roger Ailes for his guidance and support as she came to this decision.
"He is the best man that I have worked for," she explained, adding that Ailes understands the decisions that working moms have to make.
"I need to be more like [Steve's wife] Kathy Doocy and [Brian's wife] Dawn Kilmeade. And I pray that God will be with me in this decision," she said.
Hasselbeck said Brian and Steve are "truly family" and made her time on the show "the very best best work experience of my entire life."
A variety of rotating co-hosts will join Brian and Steve on the top-rated cable news morning program until a full-time replacement is named.
Watch Elisabeth's emotional announcement above.