Nazia died of lung cancer in London on August 13, 2000 at the age of 35.[1] She was admitted to North Finchley Hospice three days earlier when her condition deteriorated. She showed signs of mild recovery the day before she passed away and it was thought that doctors would allow her to go home. But early Sunday morning, her mother, Muneeza Hasan, was called to the hospital where her daughter had started coughing heavily at around 9:15am. She died within minutes. Nazia is buried at the Muslim Hendon Cemetery in London.
The Government of Pakistan has conferred upon Nazia Hassan the highest civilian award Pride of Performance. The award was presented to Mrs. Muniza Basir, mother of Nazia Hassan, by the President of Pakistan Pervez Musharraf in an official ceremony held at Islamabad on 23 March 2002. In 2003, Nazia's family established a charitable organization named after her. The organization was established in continuation of her life long charitable and social efforts to make the world a better place to live in for all irrespective of colour, creed or religion.