She was 85 and is survived by a son and a daughter.
Ghosh, who was rushed to a private hospital here last night after she complained of uneasiness, died in the wee hours, they said.
Born in 1933 at Manasinghpatana in Cuttack, Ghosh had carved a niche in the Odia film industry through her stellar performance on the silver screen.
After her successful debut in "Shri Jagannath", the versatile genius presented impressive acting in a series of films including 'mari Gaon Jhia', 'Bhai Bhai', 'Maa', 'Laxmi', 'Kaa', 'Stree and Sansar'.
Known as Chapala Nayak, she was later rechristened as Parbati Ghosh after she married producer-director Gauraprasad Ghosh.
She was honoured with national film awards for her stellar performance in 'Laxmi', 'Kaa' and 'Stree'. Ghosh was also presented the prestigious Jayadev Puraskar and Bioscope Award.
Ghosh had acted and directed the film Chha Mana Atha Guntha, based on the famous novel of Fakir Mohan Senapati.
A host of dignitaries and mourners, including Chief Minister Naveen Patnaik and members from the cine industry, visited the hospital to pay homage to her.
Describing Ghosh as an icon and one of the greatest gifts to Odia cinema industry, the chief minister in a statement said "I am deeply shocked at the passing away of veteran film personality. She was an actor, director and producer at the same time."
In the early days of Odia cinema, she single handedly uplifted Odia cinema to a new level. She was really a symbol of women empowerment when ideas like empowerment was unheard of. Her departure is a great loss to our industry and the world of silver screen. She will always be remembered for her contribution to Odia cinema, he said.
Patnaik announced that Ghosh would be given a state funeral.
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