US Defense Secretary Pete Hegseth has ordered the removal of half of the 4,000 National Guard troops who had been sent to Los Angeles to protect federal property and personnel during a spate of protests last month, the Pentagon said.
Pentagon spokesperson Sean Parnell said the decision was due to the success of the mission.
"Thanks to our troops who stepped up to answer the call, the lawlessness in Los Angeles is subsiding," Mr Parnell said in a statement.
"As such, the Secretary has ordered the release of 2,000 California National Guardsmen from the federal protection mission," he added.
US President Donald Trump deployed the California National Guard troops to Los Angeles in June, against the wishes of Democratic Governor Gavin Newsom, to quell protests triggered by immigration raids on workplaces by Immigration and Customs Enforcement agents.
The Republican president also sent about 700 Marines.
Despite legal challenges, a US appeals court let Mr Trump retain control of California's National Guard.
However, his decision to send troops into Los Angeles prompted a national debate about the use of the military on US soil inflamed political tension in the country's second-most-populous city.
The Pentagon has defended the deployment, saying safeguarding ICE agents ensures they can do their jobs.
Even after the withdrawal of those military personnel from Los Angeles, 2,000 National Guard troops will remain in the city along with the roughly 700 Marines.
Los Angeles Mayor Karen Bass, who has complained that military force was unnecessary and damaging to the local economy, said popular opposition contributed to the withdrawal.
Protesters regularly appear at immigration raids in the Los Angeles area, demonstrating their opposition to the government's force.
"This happened because the people of Los Angeles stood united and stood strong. We organised peaceful protests, we came together at rallies, we took the Mr Trump administration to court - all of this led to today's retreat," Ms Bass said.
She referred to a lawsuit the city joined that led to an order from a federal judge barring immigration officers from detaining people based solely on their race or for speaking Spanish.
The troops in Los Angeles are authorised to detain people who pose a threat to federal personnel or property, but only until police can arrest them.
Military officials are not allowed to carry out arrests themselves.
Mr Trump has vowed to deport millions of people in the country illegally and has executed raids at work sites including farms that were largely exempted from enforcement during his first term.
The administration has faced dozens of lawsuits across the country challenging its tactics.
Mr Trump has increasingly turned to the military in his immigration crackdown.
In addition to sending troops to Los Angeles, thousands of active duty troops have been employed to the border with Mexico and the Pentagon has created military zones in the border area.
The zones are intended to allow the Mr Trump administration to use troops to detain migrants without invoking the 1807 Insurrection Act that empowers a president to deploy the US military to suppress events such as civil disorder.
