After players woke up Friday uneasy and uncertain on their immediate future, Indian officials announced after lunch the league would be suspended for one week with immediate effect.
It came as bosses of the world's most popular cricket tournament met the morning after a match in Dharamsala was abandoned amid air raid warnings in the area.
Several Australian players have begun moving towards airports, with some to fly out as early as Friday.
Others are facing logistical hurdles to leave the country due to airport closures, including bus rides of up to four hours before eight-hour train trips for some players.
BCCI secretary Devajit Saikia confirmed in a statement the decision was made after teams confirmed concerns from their players about the tournament continuing.
Friday's decision to suspend the IPL came as the Pakistan Super League was also moved to Dubai, with six Australians featuring in that competition.
The PSL's move is expected to clear the path for overseas players to see out the tournament, with Australians David Warner, Sean Abbott and Ben Dwarshuis among those featuring.
"The safety and welfare of our players and staff is always a core priority and we support today's decision by the BCCI," Cricket Australia CEO Todd Greenberg said.
""We continue to work closely with the Australian Government, PCB and BCCI and are maintaining regular communication with players and support staff in both India and Pakistan."
The suspension of the IPL will leave a number of questions, including whether the lucrative league after a week or indeed at all this year.
If it does resume, there is also no guarantee overseas players would return and be available
Some 12 games remain in the regular season, along with a four-game finals series.
Questions will also linger over the ramifications regarding player payments, given all teams have up to two matches left to play out.
Some Australian players were understood to be keen to exit the country, but were also concerned around what it could mean for future chances if they did quit the league before it was suspended.
Test captain Pat Cummins, fellow quicks Josh Hazlewood and Mitchell Starc, and star batter Travis Head are among the Australians featuring in the tournament.
Marcus Stoinis, Josh Inglis, Mitch Marsh, Nathan Ellis, Aaron Hardie and Xavier Bartlett are among other Australians still playing, while numerous compatriots are also represented within coaching staff and media covering the competition.
For Test players, the suspension is likely to mean unexpected time at home before next month's World Test Championship final in England and a subsequent tour of the West Indies.
The need to suspend the tournament was made clear when air-raid warnings prompted the Ricky Ponting-coached Punjab Kings' match against Starc's Delhi side to be abandoned on Thursday night as the stadium was evacuated.
Airports in Dharamsala and Chandigarh — where the Kings are based — have been closed for civilian and commercial use since Wednesday, while others across India's north-western corridor are also out of bounds to the cricketers.
Three IPL sides - Chennai Super Kings, Sunrisers Hyderabad, and Rajasthan Royals - are already out of finals contention.
Cricket Australia has been across the situation in India and Pakistan since 26 people were killed and 17 injured in an attack in the Kashmir region late last month.
"We continue to closely monitor the situation in Pakistan and India, including obtaining regular advice and updates from the Australian government, the PCB, BCCI and local government authorities, and maintaining communication with our players and support staff currently in the region," a CA spokesperson said.
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