The French CAC closed around 8 percent lower on the day. Germany's DAX index tanked as much as 10 percent before paring losses, closing around 6.8 percent down.
Italy's FTSE MIB and Spain's IBEX both closed more than 12 percent lower.
The unexpected result of the referendum sent sterling into freefall, hitting its lowest level against the dollar since 1985 in the early hours of Friday morning at around $1.3224. It traded at $1.3645 around the European stock market close.
Bank stocks were hard hit, with the U.K.'s Barclays and the Royal Bank of Scotland both ending the session around 18 percent lower.
European banks headquartered outside of the U.K. also fell steeply. Shares of Greek and Italian banks, which were already under pressure because of concerns about their bad debt piles, were notably poor performers.