The 41-year-old Spaniard dropped out with an injury, but the specifics of his problem were not immediately available.
Olazabal was replaced by American Tom Pernice Jr., who already was traveling to Scotland as the next alternate on the list. Another U.S. golfer, Lucas Glover, was added to the field Monday when Japan's Shingo Katayama withdrew because of back and knee injuries.
Olazabal won the Masters in 1994 and '99. He has twice finished third in the British Open, including two years ago at St. Andrews.