The 35-year-old starred in India's 2007 ICC World Twenty20 final against Pakistan, taking 3-16 to help steer his country to victory in South Africa.
All-rounder Irfan first shot to stardom back in 2003 when he claimed figures of 9-16 for India Under-19s against Bangladesh, earning him a spot in the senior squad for a tour of Australia.
He confirmed his decision to call it quits in an interview on Star Sports on Saturday.
"I am announcing retirement from all forms of cricket," said Irfan. "I have been fortunate to share the dressing room with greats of the game like [Sourav] Ganguly, [Rahul] Dravid and [VVS] Laxman. I am calling time on my career.
"I would like to thank my family for providing much-needed support. I would like to thank my fans. They have always hoped for my comeback. Their support has kept me going."
Irfan, who last played on the international stage in 2012, featured in 29 Tests, 120 ODIs and 24 T20s for his country.
The Kings won the toss and chose to field first, quickly regretting that decision when the Capitals got off to a magnificent start with the bat.
After losing South African Hashim Amla early for 3, former India opener Gautam Gambhir and former West Indies batsman Kirk Edwards put on 107 for the second wicket before Gambhir fell for a 35-ball 63 in the 11th over.
Edwards went on to make the next highest score in the innings with 59 off 31 balls while Ben Dunk (37) and Ashley Nurse (34) also made solid contributions as the Capitals got what they thought would be a match-winning total of 228-8 off their 20 overs.
Anureet Singh took 4-29 from his four overs for the Kings.
Bhilwara’s opening pair of Lendl Simmons and Solomon Mire then put on only 22 for the first wicket before Simmons was first to go for 11.
It was quickly 27-2 when Tillakaratne Dilshan went for just one.
Mire and new batsman Robin Bist then put on 67 for the third wicket before Bist went in the 11th over for 30 leaving the Kings 94-3.
Mire was next to go, 40 runs and three overs later for a well-made top score of 70 from 40 balls including nine fours and three sixes.
Eventually, the Kings were 186-7 in the 18th over before captain Irfan Pathan performed a miracle to help them get over the line at 229-7 in 19.2 overs.
Pathan made 65* off just 19 balls including one four and nine sixes.
Isuru Udana took 3-51 from his four overs for the Capitals.
Full Scores
India Capitals 228-8 off 20 overs (Gautam Gambhir 65, Kirk Edwards 59, Ben Funk 37, Ashley Nurse 34, Anureet Singh 4-29)
Bhilwara Kings 229-7 off 19.2 overs (Solomon Mire 70, Irfan Pathan 65*, Robin Bist 30, Christopher Barnwell 22, Isuru Udana 3-51, Rusty Theron 2-33)
