Last week it agreed a new $25m (£19.5m) loan which it said would support the “ongoing stabilisation” of the business.
It also said it was closing its Isles of Scilly ferry service with immediate effect.
Last month the firm had an application for a £200m government loan guarantee rejected after ministers decided it would be too risky for taxpayers.
The Falklands project would have involved building, transporting and installing four floating pontoons at the island’s main port.
The company said: “Following a detailed review process, the Falkland Islands Government (FIG) have decided to cease further contractual negotiations with Harland & Wolff regarding the port replacement project.
“Despite productive discussions, FIG and Harland & Wolff were unable to reach a mutually acceptable commercial position.
“FIG acknowledges the effort and commitment demonstrated by Harland & Wolff throughout this process.”
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