Unions have been campaigning for the chain, owned by retail and industrial conglomerate Wesfarmers, to pull kitchen bench tops from its product line-up to protect workers from the deadly condition.
The Construction, Forestry, Maritime, Mining and Energy Union on Tuesday said Bunnings would stop selling the products from December 31.Â
Union secretary Zach Smith called for the total ban on the import, manufacture and use of engineered stone.
"This is the end of the line for engineered stone," he said.
"When even a massive corporation that until now has put profits over workers' lives concedes it's lost any remaining social licence to sell this killer stone, no government can squib it on a ban."
Mr Smith said other retailers should follow the lead of the hardware giant.
"IKEA talks a big game on social responsibility yet lines its shelves with bench tops that kill Australians," he said.
Safe Work Australia last month recommended a ban on the use of engineered stone products to prevent workers developing deadly diseases and cancers.
Workers can be exposed to silica dust if their jobs involve breaking, crushing, grinding or milling materials high in silica, such as engineered stone benchtops, bricks, tiles, concrete and some plastic materials.
More than 600,000 workers are exposed to materials with high silica contents in sectors such as mining, building and construction, tunnelling and manufacturing.
State and federal governments have been unable to agree on a national approach to engineered stone, despite the safety watchdog's recommendation.
NSW and other states have threatened to push ahead with their own bans if agreement is not reached at a scheduled meeting in mid-December.