The Precious star joins a growing list of stars including singers Beyoncé Knowles and Nelly Furtado in returning their reported fees of more than $1m for performing for the Libyan dictator and his family.
Carey, 41, told People Magazine: 'I was naïve and unaware of who I was booked to perform in front of. I feel horrible and embarrassed to have participated in this mess.”
She added: 'Moving forward, this is a lesson for all artists to learn from. We need to be more aware and take more responsibility, regardless of who book our shows.
'Ultimately, we as artists are to be held accountable.'
It has been reported that more than 1,000 citizens have been killed in Libya since the uprising against Gaddafi's 40-year rule began in February.