The Australian climber was coming off a dream run in the 2020 Giro d'Italia, where he placed second overall behind Tao Geoghegan Hart (INEOS Grenadiers), but his 2021 campaign never reached the same heights and recent days have seen him trying to battle through a saddle sore.
He withdrew from the race with the pain too much to continue with the support of Team DSM.
"This is obviously not how I wanted my Giro to end," Hindley said in a statement issued by the team."The team have really put in a lot to try and help, but the situation isn't improving and I really can't continue anymore.
"I am really disappointed – I have worked really hard to be here and fight for the team's spot on the podium, but there isn't another option. I'll keep rooting for the team from home and hope to be back in action soon."
Matt Winton, sports director, paid tribute to Hindley's attempt to continue to fight through the pain and acknowledged all the effort the West Australian had gone through to arrive at the race in good condition.
"We are really disappointed to not have Jai with us at the race today," said Wintston. "He has put in so much hard work over the last few months to be in the best possible shape for the team's goal here at the Giro, and it's a real shame to see his race end like this."
"The grit and determination that he has shown to try and get through the last few days is a real testament and credit to who he is as a bike rider. He has battled against an unbelievable amount of pain to try and bring value to the team in the way that he had hoped."
"It has been a really difficult decision for both the team and Jai to make and we will miss him amongst the great group of riders and staff we have here, but it is absolutely the right one. Focus now shifts to Jai recovering back at home and we will continue working towards our goals here at the Giro."
Team doctor Anko Boelens added his evaluation of Hindley's condition.
"Jai has been suffering pretty hard over the last few days with an ischial hygroma – a saddle sore – and whilst we had hoped things would improve, his condition has deteriorated significantly after the stage yesterday," said Boelens. "His pain levels are no longer tolerable and with some huge days in the mountains coming up, he cannot continue the race like this."
The Giro d'Italia continues with Stage 15, a 147-kilometre stage from Gradia to Gorizia that will likely see a sprint finish, though the attackers might have something to say about that with some hills in the finale. Watch the racing action from 2105 AEST on SBS OnDemand, with the SBS VICELAND coverage starting at 2120.