On 16 November 1936, Edward invited Prime Minister Stanley Baldwin to Buckingham Palace and expressed his desire to marry Wallis Simpson when she became free to re-marry. Baldwin informed the King that his subjects would deem the marriage morally unacceptable, largely because remarriage after divorce was opposed by the Church of England, and the people would not tolerate Wallis as Queen.[39]

As King, Edward held the role of Supreme Governor of the Church of England, and the clergy expected him to support the Church's teachings.

Edward proposed an alternative solution of a morganatic marriage, in which Edward would remain King but Wallis would not become Queen. She would enjoy some lesser title instead, and any children they might have would not inherit the throne. This too was rejected by the British Cabinet[40] as well as other Dominion governments,[41] whose views were sought pursuant to the Statute of Westminster 1931, which provided in part that "any alteration in the law touching the Succession to the Throne or the Royal Style and Titles shall hereafter require the assent as well of the Parliaments of all the Dominions as of the Parliament of the United Kingdom."[42] The Prime Ministers of Australia, Canada and South Africa made clear their opposition to the King marrying a divorcée;[43] the Irish premier expressed indifference and detachment, while the Prime Minister of New Zealand, having never even heard of Mrs. Simpson before, vacillated in disbelief.[44] Faced with this opposition, Edward at first responded that there were "not many people in Australia" and their opinion didn't matter.[45]

The King informed Baldwin that he would abdicate if he could not marry Mrs. Simpson. Baldwin then presented Edward with three choices: give up the idea of marriage; marry against his ministers' wishes; or abdicate.[46] It was clear that Edward was not prepared to give up Mrs. Simpson, and he knew that if he married against the advice of his ministers, he would cause the government to resign, prompting a constitutional crisis.[47] He chose to abdicate.[48]

Edward duly signed the instruments[49] of abdication at Fort Belvedere on 10 December 1936, in the presence of his three surviving brothers, The Duke of York, The Duke of Gloucester and The Duke of Kent (the youngest brother, Prince John, had died in 1919).[50] The next day, the last act of his reign was the royal assent to His Majesty's Declaration of Abdication Act 1936. As required by the Statute of Westminster, all the Dominions consented to the King's abdication,[51] though the Irish Free State did not pass the External Relations Act, which included the abdication in its schedule, until 12 December. As a curiosity, legally, for one day Edward was King of the Irish Free State but not the rest of the British Empire.[52]

On the night of 11 December 1936, Edward, now reverted to the title of Prince Edward, made a broadcast to the nation and the Empire, explaining his decision to abdicate. He famously said, "I have found it impossible to carry the heavy burden of responsibility and to discharge my duties as king as I would wish to do without the help and support of the woman I love."[53]

After the broadcast, Edward departed the United Kingdom for Austria, though he was unable to join Mrs. Simpson until her divorce became absolute, several months later.[54] His brother, Prince Albert, Duke of York, succeeded to the throne as George VI, whose elder daughter, The Princess Elizabeth, became first in the line of succession, as the heiress presumptive.