Peseyie was 69 and is survived by his wife, two sons and seven daughters.
A state funeral service will be held tomorrow at 1 pm at his native village in Jotsoma before the final burial, official sources said.
Peseyie was the sitting MLA from the eight Western Angami seat. He was a Naga People's Front (NPF) MLA.
Nagaland Governor, P B Acharya mourned the death of Peseyie and said the contributions made by him for the welfare of the people of Nagaland as a Member of the NLA from 2003 till date and as a two time Speaker of Assembly, one time Minister will be remembered forever.
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Lok Sabha MP Neiphiu Rio described Peseyie as a tall leader who was renowned for his simplicity and humility.
"A man of integrity and strong moral character, he stood firmly by the principles in which he believed in throughout his life. He gave his entire life in the service of the people," Rio said.
Under his leadership, Rio said the State Assembly broke new ground and created history by institution of the Joint Legislators Forum (JLF) cutting across political party lines.
The JLF strongly facilitated the Indo-Naga peace process and Peseyie in his capacity as Convenor, walked the extra mile in our collective endeavour to find a peaceful solution, Rio said adding that he remained committed to this cause till his last day.