The Duke, 90, will spend the next few days at King Edward VII Hospital in London after being taken there by ambulance from Windsor Castle.
He was said to be "disappointed" that he would miss the remainder of the Jubilee weekend, which culminates tomorrow with a Service of Thanksgiving at St Paul's Cathedral and a carriage procession through the capital.
The Duke's sudden illness, which follows a spell in hospital over Christmas after he suffered heart problems, will lead to inevitable speculation that his health has suffered as a result of the four hours he spent in the open in bitterly cold and wet conditions during yesterday's Thames Diamond Jubilee Pageant.
A spokesman for Buckingham Palace said: "His Royal Highness the Duke of Edinburgh was taken to King Edward VII Hospital in London this afternoon from Windsor Castle as a precautionary measure after developing a bladder infection, which is being assessed and treated.
"Prince Philip will remain in hospital under observation for a few days. He is understandably disappointed about missing this evening's Diamond Jubilee concert and tomorrow's engagements."
The Duke was taken to the hospital in Paddington following a call to ambulance control from Windsor at 2pm stating that the Duke was feeling unwell.
His doctor had been called to Windsor Castle and was with him when paramedics arrived and he was lifted into the ambulance in a chair before it set off for London.
His illness will cast a long shadow over tonight's Diamond Jubilee concert in front of Buckingham Palace, which should have been the most fun-filled event of the Jubilee weekend.
Instead, the Queen's thoughts, and those of the rest of the Royal family, will no doubt be elsewhere as the Duke, who will be 91 on Sunday, fights to regain his health.