Sonko's PASTEF party does not have the political means necessary for Sonko to run for presidential election in 2024
There would be a "hunt" for other party members, who could face persecution as well.
Two people were killed Monday during protests in southern Senegal after Sonko's indictment.
The 49-year-old politician, who is popular among young Senegalese, was formally charged Monday with calling for insurrection, undermining state security, criminal association with a terrorist body and other crimes.
His lawyers say he could face between five and 20 years in prison.
The charges laid on Monday are just the latest in a string of court cases Sonko has faced in recent years.
On June 1 he was sentenced in absentia to two years in prison for morally corrupting a young woman, a verdict that made him ineligible to contest the February 2024 presidential election.
His sentencing sparked fatal clashes that left at least 16 dead.
And an appeals court on May 8 gave him a six-month suspended sentence in a defamation case.
On Monday, the interior minister announced that Sonko's party would be dissolved in a statement issued less than two hours after his indictment.
It said the party had "frequently" called for insurrection, leading to destruction and the loss of life.
The party slammed the move, saying in a statement that the country's stability was "now compromised", and that the dissolution was "anti-democratic".
Earlier, Sonko had said on social media that "if the Senegalese people, for whom I have always fought, abdicate and decide to leave me in the hands of Macky Sall's regime, I will submit, as always, to divine will".
He had previously claimed no one could block him from running for president.
"This judicial decision that's struck Ousmane Sonko could sound the death knell for his presidential ambitions in view of the February 2024 election, for which he has been a candidate for a long time", wrote commentator Momar Dieng in a blog post.
"Not only could he lose his electoral eligibility, which would then exclude him from the presidential election, but (he could) also find himself still in prison during the electoral campaign and the said ballot."
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