Kashinath (67) is survived by wife Chandraprabha and two children.
He was suffering from Hodgkin's Lymphoma, a type of cancer, authorities at Sri Shankara Cancer Foundation, where he was undergoing treatment, said.
"He was diagnosed with Hogan's Lymphoma about seven months back and was undergoing treatment in our hospital. Three days ago, he was admitted to our hospital with fever and breathing related complications. Today morning he passed away," Dr Ravi Thippeswamy of the hospital said.
Born at Kundapura in Karnataka, the actor's journey to the tinsel town began as director of 'AparoopadaAthithigalu' (1976) starring Suresh Heblikar, Anand Darwar andMamatha.
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Inspired by its success, Kashinath remade the movie in Hindi with a title 'Be-Shaque'starring Mithun Chakraborty, Yogeeta Bali and Amrish Puri.
He also acted in several films.
Kashinath has more than 40 movies to his credit.
His Kannada film 'Avale Nanna Hendathi' was later remade in Hindi titled 'Jawani Zindabad' starring Aamir Khan and Farah by Arun Bhatt.
He shaped the careers of several personalities in the Kannada film industry including actor Upendra and director Sunil Kumar Desai.
Recalling his association with Kashinath, Upendra said Kashinath said he was an "institution unto himself whotaught us many things. It is hard to accept that he is no more," Upendra said.