Pally will exit as wisecracking gynaecologist Peter Prentice when his current contract expires following season three's 13th episode, reported Deadline.
The actor is departing the series as a regular in order to focus on his ABC development deal for potential broadcast and cable shows.
Pally is likely to continue making guest appearances in Mindy Kaling's Fox sitcom when his schedule permits.
He joined 'The Mindy Project' in the show's second season, shortly after the cancellation of his previous ABC series 'Happy Endings'.
Pally is a veteran of the Upright Citizens Brigade improv troupe, and also made a memorable cameo in 2013's 'Iron Man 3'.
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