Appearing beside Haley in the Oval Office, Trump praised her and said he hoped she could come back to the administration in another capacity.
In her brief White House press conference with President Trump, Haley said it was her "honor" to have defended America. Trump tweeted that "The people of SC are embarrassed by Nikki Haley".
It came in response to an anonymous essay in the New York Times by a senior administration official that alleged there was a secret "resistance" effort from the right in the administration and internal discussions of invoking the 25th amendment to remove Mr Trump from office.
Trump said Haley first discussed leaving the administration with him six months ago.
And image-obsessed President Trump did little to dampen rumors of a promotion for Ivanka after praising Haley for making the role 'a much more glamorous position'.
It could be that Sen.
A former governor of SC who is the daughter of Indian immigrants, Haley is seen as a rising star in the Republican Party and a possible candidate in the 2020 presidential election. Alas, Graham is "not interested" in a Cabinet spot, an aide told CNN.
A rookie to global politics, the former SC governor was an unusual pick for to be United Nations envoy.
Haley again told the president last week that she planned on resigning, but in a rare turn of events in the nation's capital, word did not leak of her intentions before she officially submitted her resignation.
"And they were the result of the regime and Russia's failure to live up to their worldwide commitments to remove all chemical weapons from Syria".
She denied she would run for president in 2020.
Earlier this year, Haley, 46, told Reuters that, "Every day I feel like I put body armor on", to protect U.S. interests at the United Nations. "As a private citizen, I look forward to supporting your re-election as President, and supporting the policies that will continue to move our country toward even greater heights". She was re-elected in 2014. "You can have your pick", he said.
The daughter of immigrants from India, Haley favoured free markets and global trade and earned worldwide attention for speaking out against the Confederate battle flag in the aftermath of the 2015 massacre at a black church in Charleston, South Carolina. The latter two are CEOs of private companies in SC.
White House economic adviser Larry Kudlow told reporters Mrs Haley had gotten "ahead of the curve" by previewing the policy, putting her remarks down to "momentary confusion".
Speaker Paul Ryan took to twitter, saying he was "saddened" to see Haley leaving the administration. Menendez said he is concerned about the leadership vacuum she leaves and "the national security impact of her departure at this time of continued disarray for this administration".