NSW Police Commissioner Karen Webb will finish up on September 30 after a three-year tenure in charge of the force's 20,000 employees.
"The commissioner recently wrote to me indicating her intention to retire," Police Minister Yasmin Catley told Question Time on Wednesday.
"She has been a force for change and reform focused on the safety and well-being of the NSW Police Force.
"She is a true trailblazer."
Her resignation comes a day after former New Zealand Police commissioner Mike Bush was appointed to lead Victoria Police, after its commissioner quit in February.
Ms Webb, the first woman to lead the state's police force, has faced several crises during her short reign.
A debilitating shortage of officers blew out to several thousand unfilled positions before she announced new recruits would be paid to train from late 2023.
Alongside Ms Catley, Ms Webb also penned a massive pay increase of up to 40 per cent in 2024, making rank-and-file officers among the best-paid cops in Australia.
The deal also improved job-sharing arrangements, particularly benefiting parents.
The commissioner has, however, been no stranger to the headlines for the wrong reasons.
Ms Webb was widely criticised for her initial response to the fatal tasering of 95-year-old Clare Nowland in 2023 in Cooma in southern NSW.
A media release from her office in the wake of the tragic incident did not mention that a Taser was used and simply said Ms Nowland had "sustained injuries during an interaction with police".
She also raised eyebrows in 2024 when invoking the Taylor Swift song lyric, saying 'haters are gonna hate', after being asked about leadership concerns when two men were allegedly shot dead by a serving police officer.
Ms Webb has also drawn scrutiny after parting ways with four media advisors in two years, after it was revealed the changes led to almost $700,000 in termination payments.
The Law Enforcement Conduct Commission also found Ms Webb should have disclosed a friendship with the supplier of 50 bottles of custom-labelled gin she bought as gifts.
The commissioner banned the practice of using taxpayers' money to purchase alcohol for gifts and hospitality after she came under fire for buying the gin.
Opposition police spokesman Paul Toole said her departure added to a challenging period for the force.
"Right now, frontline officers need certainty and leadership ... they serve our communities with professionalism and deserve the same from those at the top," he said.
Ms Webb will mark 38 years of service in the coming weeks.
She has agreed to depart on September 30 to allow the comprehensive search for her successor to be completed, Ms Catley said.Â