He was 87.
Bhatt, a Sangeet Natak Akademi awardee, is survived by his son and daughter.
He directed plays and had also served as the dean of the faculty of Performing Arts at Maharaja Sayajirao University .
"Makrand Bhatt died of brief illness," his son Suketu said.
Bhatt also served as chairman of the Gujarat Sangeet Natak Akademi between 1992 and 1995.
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His wife Urmila Bhatt had acted in Hindi films and also did Gujarati stage.
Bhatt had won acclaim as an outstanding director for "Dhara Gurjari", "Shetal Ne Kanthe", "Finger Print", "Hoholika" etc.