Thousands of people have taken to the streets in Benghazi to protest against militias fighting armed forces
Britain is to temporarily close its embassy in the Libyan capital, Tripoli, because of worsening violence.
The Foreign Office, which has urged Britons to leave the country immediately, said consular assistance would not be available from Monday.
Ambassador Michael Aron described the situation as "very sad" and said staff would return to the embassy "as soon as security allows".
Arrangements are being made to help British nationals leave Libya.
The country has been gripped by instability since the uprising in 2011.
More than 200 people have been killed in Tripoli and Benghazi in the past two weeks.
Thousands of protesters took to the streets of the two cities on Friday to denounce militias who have been fighting Libyan armed forces.
'Risk too great'
Commercial flights are still leaving Libya but the Foreign Office (FCO) warned flight schedules could change without notice.
On Wednesday, British Airways suspended flights to and from Tripoli up to and including 5 August due to the security situation at the country's main international airport.
The FCO is advising against all travel to Libya.
Mr Aron tweeted: "Reluctantly we've decided we have to leave & temporarily suspend Embassy operations in #Libya. We will be back as soon as security allows."
He added: "Fighting has spread to where we live in Suraj and the risk of getting caught in the crossfire is too great. Very sad."
British ambassador Michael Aron said the decision had been taken 'reluctantly'
Mr Aron said on Twitter that a temporary office would be set up in Tunisia.
A FCO spokesman said: "Due to the more intense and more widespread fighting in Tripoli, and greater instability throughout Libya, the Foreign and Commonwealth Office advise against all travel to Libya.
"British nationals in Libya are strongly urged to leave immediately by commercial means."
He would not comment on Mr Aron's statement about the move to Tunisia.
Most western countries have now withdrawn diplomats from Libya.
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