Rosenior was appointed on 6 January as a replacement for Enzo Maresca, joining from Chelsea's sister club Strasbourg on a six-and-a-half year deal.
He lasted 23 matches, presiding over five consecutive Premier League defeats without scoring — the club's worst run in 114 years.
Chelsea released the following statement:
"Chelsea Football Club has today parted company with Head Coach Liam Rosenior. On behalf of everyone at Chelsea FC, we would like to place on record our gratitude to Liam and his staff for all their efforts during their time with the Club.
"Liam has always conducted himself with the highest integrity and professionalism following his appointment mid-way through the season.
"This has not been a decision the Club has taken lightly, however recent results and performances have fallen below the necessary standards with still so much more to play for this season.
"Everyone at Chelsea FC wishes Liam every success in the future.
"Calum McFarlane will take charge of the team as Interim Head Coach until the end of the season with support from existing Club backroom staff, as we strive to achieve European qualification and progress in the FA Cup.
"As the Club works to bring stability to the Head Coach position, we will undertake a process of self-reflection to make the right long-term appointment."
Chelsea currently sit seventh in the Premier League. They face Leeds United in the FA Cup semi-final at Wembley on Sunday.