During an injury-hit career he twice won the European Cup with his native province. He made his international debut against Italy in the 2010 Six Nations before winning his eighth and final cap against New Zealand three years later.
After being concussed in their opening PRO12 game against Edinburgh this month, Leinster said McLaughlin was told it would be in his long-term interests to stop playing.
"It is upsetting and frustrating to have to retire when I feel I have so much left to give but it is the right decision and I am glad our medical staff were so pro-active in encouraging me to see a neurologist," McLaughlin said in a statement.
He was named Leinster captain in the absence of World Cup players, including fellow backrows Sean O'Brien, Jamie Heaslip and Jordi Murphy, and his retirement will be a blow to the province's early-season prospects.
Concussion-related injuries in rugby have become an increasing concern and claimed the careers of leading players like England's Shontayne Hape and McLaughlin's fellow Ireland internationals Declan Fitzpatrick, Bernard Jackman, John Fogarty and Dave Quinlan.
(Reporting by Padraic Halpin,; editing by Tony Jimenez)
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