The Yellow Submarine went down 2-0 at El Madrigal against the Segunda B outfit in the second leg of their fourth-round tie to crash out of the cup 3-1 on aggregate.
The defeat, coupled with the team's precarious position of 17th in the Primera Division, prompted the club's board to dispense with Garrido's services.
Villarreal also endured a terrible Champions League campaign, becoming the first Spanish side to lose all six group stage matches.
A Villarreal statement read: "Juan Carlos Garrido has tonight stopped being the coach of Villarreal's first team after the 2-0 cup defeat against Mirandes.
"The club thanks the Valencian tactician for all his efforts and dedication and wishes him luck in his future career.
"His successor has not yet been confirmed."
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