He was 74.
Dile Ram has been suffering from kidney problem and was on dialysis, family members said.
His last rites were performed at Cahndupur cremation ground in presence of family members and several political leaders including local MP Ram Swaroop Sharma, MLA Vinod Kumar and former minister Roop Singh Thakur.
Four-time MLA from Nachan in Mandi district, Dile Ram, was elected to Assembly from Nachan for the first time in 1977 on Janta Party ticket and retained the seat in 1982 and again won it in 1990 and 2007 on BJP ticket.
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Governor Urmila Singh, Chief Minister Virbhadra Singh and former chief ministers Shanta Kumar and PK Dhumal and several other leaders have expressed grief over the demise of the senior politician.
In his condolence message, the Chief Minister said that Dile Ram was a veteran politician and social worker from Mandi who served the people in various capacities.
Shanta Kumar and former minister Roop Singh described him as a dedicated party worker who worked tirelessly for strengthening the party.