Pearson, 34, retires with a final record of 20-16. He suffered a first-round knockout loss to Desmond Green last weekend in Philadelphia, his sixth loss in his past seven fights.
Fighting out of Sunderland, England, Pearson debuted with the UFC in 2009. He won the ninth season of The Ultimate Fighter reality series and went on to face some of the top names at featherweight and lightweight, including Edson Barboza, Cub Swanson, Diego Sanchez, Gray Maynard, Al Iaquinta and Jorge Masvidal.
Pearson won the UFC's "Fight of the Night" honors on three occasions.