The West African giants were handed a difficult assignment after being drawn in the 'Group of Death' alongside France, Norway and Iraq.
After a 3-1 loss to the tournament favourites and 2018 Champions, Thiaw's team then went down 3-2 to Erling Haaland's Norwegian side but emerged as one of eight best third-placed teams after a 5-0 thrashing of Iraq.
But the decision to dispense with the head coach and his entire technical staff comes after their dramatic last 32 elimination.
Senegal held a two-goal advantage over Belgium heading into the final minutes of the match but ended up losing 3-2 in extra-time.
"The Senegalese Football Federation (FSF) informs the public that following the meeting of the Executive Committee held this Saturday July 11 2026, it was decided to initiate a procedure to terminate the functions of the national coach, Mr Pape Thiaw, as well as his entire technical staff.
"This decision comes after the elimination of the Senegal national team in the round of 32 of the 2026 FIFA World Cup. After a thorough evaluation of the sporting results and prospects of the national team, the Executive Committee deemed it necessary to initiate this procedure in the best interests of Senegalese football," read a statement.
Thiaw had been in charge of the Teranga Lions since December 2024 after succeeding Aliou Cisse.