England, already eliminated from the tournament after defeats by New Zealand and South Africa, were bowled out for 88 chasing a modest 134 for victory in their final Group One super 10 match in Chittagong.
England's 88 was the lowest total ever posted by a full-member test side against an associate nation in the shortest format of the game.
"It sums up our winter really. It was pretty similar to our batting displays when we lost the Ashes in Australia," a dejected England captain Stuart Broad said at the presentation ceremony.
"Lack of commitment in the shots and a very disorganised chase it was. The bowling and fielding was ok, we just lacked a bit of hunger with the bat by the looks of it.
"No one got going, no one took responsibility and Netherlands took the chance. It was a relatively simple chase but a shocking chase in the end."
Logan van Geek and Mudassar Bukhari took three wickets each for the Dutch, who also defeated England by four wickets in the opening match of the World Twenty20 at Lord's in 2009.
Bukhari (3-12) did the damage with the new ball, taking the openers out while van Geek (3-9) accounted for the lower middle order as England capitulated to be all out with 14 balls to spare.
"The whole tournament I hadn't taken any wickets and this was the game for me actually," Bukhari said at the presentation ceremony. "The wicket did help me a bit.
"At the halfway stage, I thought it's going to be hard work out there but when we took four wickets in powerplay, we thought we had a good chance there."
Broad, who said he was unsure if he would continue leading the team, took three wickets for 24 runs as the bowlers restricted the Netherlands to 133 for five wickets after opting to field first.
Wesley Barresi top-scored for the Dutch with a 48 and added 50 for the second wicket with opener Stephan Myburgh (39) to lay the foundation for their total.
- Sports & Recreation