Bahrain's Foreign Ministry summoned the Iraqi charge d'affaires for allegedly breaching diplomatic norms on Tuesday.
A statement carried by state news agency BNA said Moayad Omar Abdul Rahman had made "repeated" violations and his "recent unacceptable behaviour" had interfered with the internal affairs of the kingdom.
At a meeting with Bahrain's Minister of Foreign Affairs, Dr Abdullatif bin Rashid Al Zayani, Mr Rahman was handed a note of official protest.
Shortly after the announcement, Iraqi Foreign Minister Fuad Hussein decided to bring Mr Abdul Rahman back to Baghdad, the ministry's spokesman Ahmed Al Sahaf said in a statement.
Neither Manama and Baghdad would specify what the diplomat had done to draw the censure, nor expand on further consequences.
Iraq has yet to publicly respond.
