The 34-year-old forward finishes his career as the top goalscorer in the Brazilian men's national team's history, with 80 goals in 129 appearances.
Neymar appeared twice at the 2026 World Cup, scoring from the penalty spot in the dying minutes of what proved to be his last international outing.
But his late penalty could not save Brazil from their earliest World Cup exit since 1966.
Neymar had hinted several times over the past year that he would play his last game for the Selecao at this tournament, and it was reported in the Brazilian media on Sunday night that he had called time on his career.
The winger broke down in tears at full-time, having earlier laughed in the face of Norway goalkeeper Orjan Nyland after dispatching his penalty.
Carlo Ancelotti recalled Neymar to the Brazil squad for his fourth World Cup after a three-year hiatus from the national team, offering the forward one final opportunity to win the tournament.
But Erling Haaland's brace ended that dream, with the Manchester City striker scoring twice as Norway won 2-1.
Brazil manager Ancelotti has insisted he will not quit, despite his side being dominated in possession by Norway and falling to two late Haaland goals.
Ancelotti said the defeat was "bitter" for Brazil but insisted he wanted to oversee the rebuild that was now necessary, after what was also the last Brazil appearance for Casemiro.
"As long as I'm passionate, I want to keep doing this job," Ancelotti said.
"We have to think about it. It's very evident that in the midfield we have to move some players. We need some young talent. We need some high level players coming into Brazilian football to be able to play for the national team in the future.
"We continue to do our jobs and look for new ideas, the same thing we did this year. That is football for you. That is sport.
"Sometimes you have to manage the sadness and bitter taste of a defeat. I am very used to that. We are going to take this defeat and use it as fuel for the new cycle."
One of the game's decisive moments was Bruno Guimaraes' first-half penalty miss, but Ancelotti defended the decision to allow him, rather than Vinicius Junior, who handed the ball over to Guimaraes, to take the kick.
"We did statistics. The best person would be Neymar and then Raphinha and after Bruno Guimaraes and after Bruno, Martinelli. So we chose Bruno Guimaraes as we felt he would be the best," Ancelotti said.
The Italian also explained his side's approach to facing Norway, who dominated possession and completed 617 passes to Brazil's 271.
"We knew they could play with this style and we didn't want to press high," Ancelotti said. "Because Norway was locking their defensive field, applying too much pressure was a risk."
Ancelotti also defended his substitutions, including the introduction of Lyon forward Endrick, who missed a golden chance in the second half.
"Endrick came in to give a lot more depth to the match," he said. "That worked for one minute or two and then to bring in that quality to the final third we brought in Neymar, with Endrick on the right. Then we changed Bruno because he was tired, so fresh legs in the midfield."
Brazil's rebuild now begins in earnest, with Ancelotti's contract running until 2030 and the manager adamant he is the right man to lead the next generation forward.