The 25-year-old cricketer, who was in contention for a Test recall for the coming series against India, succumbed to his injuries at the St Vincent's Hospital, where he was battling for life after being hit on the head by a bouncer from Sean Abbot.
"It is my sad duty to inform you that a short time ago Phillip Hughes passed away," Australian team doctor Peter Brukner said in a statement.
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Hughes played 26 Tests in his short-career, scoring 1,535 runs at 32.65 with three centuries and seven fifties. His final Test was at Lord's in July 2013.
He also played 25 ODIs, and remains the only Australian to score a century on ODI debut. His final ODI came last month against Pakistan in Abu Dhabi, one week after he played his lone T20 international against the same opposition in Dubai.
"As a cricket community we mourn his loss and extend our deepest sympathies to Phillip's family and friends at this incredibly sad time," Brukner said.
"Cricket Australia kindly asks that the privacy of the Hughes family, players and staff be respected."
As a result of his death, India's two-day warm-up game against CA invitational XI was cancelled while the second day's play of the third and final Test match between Pakistan and New Zealand was abandoned as a mark of respect for the young cricketer.
Hughes' teammates and cricketers the world over, including batting legend Sachin Tendulkar, expressed shock over his tragic death and offered deepest condolences to his family.
The Indian cricket team also joined in giving their condolences.
"The touring Indian team joins the cricketing fraternity across the world in offering condolences to the family of Phillip Hughes, who has departed from our midst," said Team India in a statement released through Cricket Australia.
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