President Michel Aoun accepted Diab's resignation on Monday and asked the government to stay on in a caretaker capacity until a new cabinet was formed.
Tensions have been boiling over in the country following the massive explosion at Beirut's port that killed some 200 people and wounded 6,000 others, according to the latest tally.
"This crime" was a result of corruption that is "bigger than the state", Diab said in a televised statement, adding that he was taking "a step back" so he could stand with the people "and fight the battle for change alongside them".
"I declare today the resignation of this government. May God protect Lebanon," Diab said, repeating the last phrase three times.
Read more: Huge blast in Lebanon, 78 killed, nearly 4,000 injured
The developments follow a weekend of angry, violent anti-establishment protests in which 728 people were wounded and one police officer killed amid a heavy crackdown by security forces.
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