Chatterjee, 81, was admitted to the hospital on Tuesday after she fell down at her residence and suffered a massive stroke. She was put on ventilation.
Chatterjee began her film career in 1964 with the movie “Bivas” opposite Bengali matinee idol Uttam Kumar.
Her other films including Antony Firingee, Jai Jayanti, Har Mana Har and Memsaheb.
Chatterjee spent ten years in Bollywood, where her notable films included Victoria No. 203, Raat Andheri Thi, Aaap ki Kasam, Chori Chori and Talash.
She was also a regular in Bengali jatra (folk theatre).
In her condolence message, West Bengal Chief Minister Mamata Banerjee recalled Chatterjee’s four-decade long acting career and termed her death as an “irreparable loss for stage and screen.
“I express my heartfelt sympathies to her family members and fans,” she said.