The Irishman was handed a six-month suspension and fined $50,000, while his opponent Nurmagomedov was banned for nine months and fined $500,000 by the Nevada Athletic Commission.
Members of the Russian’s team were also involved in a fracas with the beaten McGregor.
Both bans have been back-dated to the night of the fight — meaning McGregor will be free to return to action in a month.
McGregor posted two messages on Twitter following the news.
“It was not my intention to land the final blow of the night on my opponent’s blood relative. It’s just how it played out. I look forward to competing again soon. Thank you all.”
Moments later, the 30-year-old tweeted another message explaining the incident.
“The final blow of the night UFC 229 in association with McGregor Sports and Entertainment,” he wrote.
The Russian’s suspension will be reduced by three months if he partakes in an anti-bullying campaign in Nevada.
However, Nurmagomedov’s manager Ali Abdelaziz argued his man was not the bully in this situation.