Several recent papers considered the high-friction limit for systems arising in fluid mechanics. Following this approach, we rigorously derive the nonlocal Cahn-Hilliard equation as a limit of the nonlocal Euler-Korteweg equation using the relative entropy method. Applying the recent result by the first and third author, we also derive rigorously the local degenerate Cahn-Hilliard equation. The proof is formulated for dissipative measure-valued solutions of the nonlocal Euler-Korteweg equation which are known to exist on arbitrary intervals of time. Our work provides a new method to derive equations not enjoying classical solutions via relative entropy method by introducing the nonlocal effect in the fluid equation.