She passed away in a Mumbai hospital after suffering a cardiac arrest on Wednesday night.
The actress was famous for playing the role of the mother of main characters in films and TV soaps. She also acted in several Marathi language plays.
She starred in dozens of hit Bollywood films like Hum Aapke Hain Koun, Kuch Kuch Hota Hai, and Maine Pyar Kiya.
Lagoo started her career in the late 1970s, and soon became famous for playing the mother of lead characters.
She was also known as the "on-screen mother" of popular actor Salman Khan, with whom she acted in several films.
She played Khan's mother in his first film 28 years ago at the age of 31.