The deputies voted 90-4 today to dissolve the assembly, meaning elections must take place within 45 days. The president will set the date.
The move came after Parliament had deadlocked on a number of issues, including creation of Kosovo's armed forces. That was opposed by the Serb deputies, who sought more guarantees for their minority.
Officials have expressed hoped an early vote will bring more stability.
Plans to form Kosovo's military are also opposed by Serbia, which has rejected Kosovo's 2008 declaration of independence.