MPs jointly slammed Ukip for the poster, which appeared to focus heavily on migrants from North Africa and the Middle East, rather than other EU nations.
"Just when you thought leave campaigners couldn't stoop any lower, they are now exploiting the misery of the Syrian refugee crisis in the most dishonest and immoral way," said Labour's former shadow home secretary Yvette Cooper.
"We rely on other EU countries doing asylum checks and coping with this crisis long before it ever reaches Britain's shores - ripping up cooperation with the EU would make it much harder to stop the people smugglers, help refugees or prevent illegal migration. No country can cope with something like this alone."
Conservative MP Neil Carmichael added: “Distasteful propaganda like this can only make our immigration challenges worse, not better, and damage community cohesion in Britain.”
Liberal Democrat MP Tom Brake accused Ukip of engaging in "small minded fear tactics and xenophobia", and The Green Party's only MP Caroline Lucas described the poster as "utterly disgusting".
"The refugee crisis has not been caused by the EU. It is a common challenge that all countries must deal with effectively and humanely – and that is far more possible inside the EU than out," Lucas added.
However, speaking at an event in London Ukip leader Nigel Farage said that the UK has seen huge streams of people coming into Europe over the course of the last year.
"No security checks done on anybody and just in the last two weeks a bomb plot in Dusseldorf unveiled showing that four people had come in posing as migrants last year," he said.
Ukip was not immediately available for comment.