Bahrain will also sever diplomatic ties with Iran, a day after Saudi Arabia asked Iranian missions in the kingdom to leave within 48 hours.
Bahraini minister of media affairs said in a statement on Monday it was severing diplomatic ties with Iran, and gave a similar ultimatum of two days for Iranian diplomats to leave the island kingdom.
Sectarian tensions have risen in the Middle East following the execution of Shiite cleric Sheikh Nimr al-Nimr and 46 others on Saturday.
Protests broke out in Iran over the weekend, with several protesters firebombing the Saudi embassy in Tehran, which led to Saudi Arabia deciding to cut off ties with it.
Riyadh had accused al-Nimr of terrorist activities and trying to create dissent in the Shia community in the country.
Bahrain was among the several Gulf nations that had backed the execution of the Shia cleric in Saudi Arabia, even as several countries, including the United States, expressed concern over the move.
Anti-Saudi protests had also broken out in Bahrain as well as Iraq and Lebanon.
Bahrain, which has Sunni Muslim rulers, has a majority Shia population.