A news release says Green leader David Coon visited the eastern riding of Kent earlier this week and decided the party would not participate in the April 15 byelection.
In a statement, Coon says the party's potential candidates were not able to run on such short notice.
He says given there is a general election in about 18 months, the party has decided to wait.
Former premier Shawn Graham quit politics after he was found to be in a conflict of interest over a $50-million loan guarantee his government gave to a construction firm in 2009.
The province's conflict of interest commissioner has said Graham should have removed himself from the cabinet discussions about the loan guarantee to Acton because it had ties to his father.