He was 88. He is survived by his wife Saradamani and singer-son Kavalam Sreekumar.
He had been unwell for some time due to age related ailments, family sources said.
A multi-faceted personality who carved his niche in divergent fields, Panicker, popularly known as Kavalam, was a well-established poet, lyricist and theatre director.
Untouched by the western influence in dramas, Kavalam had evolved a unique theatre training system with Indian perspective.
His plays were known for its Indian narrative mode, usage of ethnic languages and rural flavour.
'Shakunthalalam', 'Karnabharam' and 'Vikramorvasheeyam' were among Sanskrit dramas which he adapted and gave life on the stage.
Hailing from scenic Kavalam in Alappuzha district, the veteran was the founder director of 'Sopanam',a theatre group.
Kavalam, who served as secretary of the Kerala Sangeetha Nataka Academy in the 1960s, was accorded with Padma Bhushan in the year 2007.
He also won a number of honours, including Sangeeth Natak Akademy award, Sangeeth Natak Fellowship and Kerala State Film Award for the best lyricist.
The date and time of cremation is yet to be finalized, the family added.
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