The brand - which is famous for its crocodile logo - has 1,200 shops and 10,600 outlets spread across 120 countries.
It made the decision to drop mohair after seeing PETA Asia's eyewitness investigation of the mohair industry in South Africa, the source of more than 50 percent of the world's mohair, telling PETA it was 'very concerned about animal welfare'.
GRAPHIC: PETA's investigation
PETA's footage shows goats being dragged by the horns and legs, and being sheared so quickly, they are left with gaping wounds. Some are shown being killed - one animal has their head hacked off with a dull knife.
"PETA's exposé has pulled back the curtain on the violent mohair industry, and Lacoste has made the commendable decision to implement a total ban on the material," PETA Director, Elisa Allen, said in a statement sent to Plant Based News.
"In doing so, the company joins the ever-growing list of fashion brands that have realised that cruelty to animals is not in fashion."
Lacoste joins more than 330 other brands worldwide that have ditched mohair, including Fast Retailing – one of the largest global apparel retailers, whose brands include UNIQLO and GU.