The Independent Group for Change will disband after all of its members failed to win seats at the general election.
It was founded by MPs who defected from Labour and the Conservatives, though some then also left it for the Lib Dems.
Party leader, Anna Soubry, wrote to members "Whilst there is clearly a need for massive change in British politics, now that we no longer have voices within Parliament, a longer term realignment will have to take place in a different way.
"Honesty and realism are at the core of our values, and we therefore must recognise that the political uncertainty of recent months has now given way to a settled pattern in Parliament for the next five years. So this is the right time for us to take stock."
The group tweeted: "We came together & took a stand when others wouldn't. It was right to shine a spotlight on Britain's broken politics. But having taken stock and with no voice now in Parliament, we begin the process of winding up our party. Thanks to all who stood with us."
It was formed after 11 Conservative and Labour MPs left their parties to form a new centre grouping.
Originally it was founded by founded by former Labour MPs Luciana Berger, Ann Coffey, Mike Gapes, Chris Leslie, Gavin Shuker, Angela Smith and Chuka Umunna.
They were later joined by Labour defector Joan Ryan and ex-Tories Anna Soubry, Heidi Allen and Sarah Wollaston.
