The Cousy Award finalist fractured the scaphoid bone in his right wrist during last Sunday's third-round NCAA Tournament game against Creighton. He had surgery on Monday morning to insert a screw in his wrist.
Marshall participated in a limited amount of practice on Saturday afternoon and told reporters that it was "tough to catch and tough to pass."
The decision to sit out of the Elite Eight contest was made following UNC's shootaround on Sunday.
Marshall had indicated on Saturday that his parents, head coach Roy Williams and trainer Chris Hirth would all be involved in the decision-making process.
"There are two things that have to happen: one, he has to feel comfortable that he's not hurting; and then two, I have to decide, 'Can he be effective in the game with his situation?'" Williams said on Saturday.
Freshman Stilman White will make his second-straight start in Marshall's place. The freshman played 32 minutes against Ohio, recording two points, six assists and one steal, with no turnovers.
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