General elections are scheduled in Bangladesh for January 5, but the government has deployed thousands of troops to contain deadly violence ahead of the vote, which the opposition and a key ruling party ally are set to boycott.
"The United States believes Bangladesh has an opportunity to demonstrate its commitment to democracy by organising free and fair elections that are credible in the eyes of the Bangladeshi people," State Department spokeswoman Jen Psaki said in a statement.
More than half of the parliamentary seats are namely uncontested.
"In this context, the United States will not deploy observers for these elections," Psaki said.
"We remain prepared to reengage our observation efforts at a later time in a more conducive environment."
Violence over the planned elections has left more than 100 people dead since November.
"The United States encourages all political parties and Bangladeshi citizens to participate peacefully in the political process. Violence is not acceptable because it subverts the democratic process," Psaki said.
Three rounds of UN-brokered last-minute talks between the government and opposition have failed to resolve the dispute, plunging the nation into its worst political crisis in decades.
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