He was 57.
Prasad had been suffering from cancer. His funeral would take place tomorrow, according to film industry sources.
Born as A Janardhana Prasad, he came to be known as Ahuti Prasad for his much-acclaimed performance as a villain in the film 'Ahuti' in 1980s.
The actor had played negative roles during the early years of his career in the 1980s but gained prominence as a character artiste later on.
His role as father to Bollywood actress Tabu in Nagarjuna starrer Telugu film 'Ninne Pelladatha' won him much appreciation. His roles as father in several films like 'Bendu Apparao' also got him praise.
Prasad, a recipient of prestigious awards like Nandi award given by Andhra Pradesh government, also served as an office bearer of Movie Artistes Association (MAA) here.
Several film personalities, including veteran Telugu actor and TDP MP M Murali Mohan, YSR Congress president Y S Jaganmohan Reddy, Andhra Pradesh Information and Culture Minister P Raghunatha Reddy, condoled the death of Prasad.