He was 86. He is survived by his wife, son and daughter.
Sharma used to stay in Shimla with his son and had gone to Dehradun on January 2.
He was in normal health then, his son Sanjay Sharma said.
Chief Minister Virbhadra Singh has expressed deep grief over the demise of Sharma and recalled his contribution to the field of literature and said that he was inspiration for several young writers.
It is a great loss to the literary world, especially to Himachal Pradesh, Singh said.
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Born on April 4, 1930 in Dehradun, Satyen Sharma joined Himachal Pradesh Public Relations Department in 1957 as sub-editor of Himprastha magazine.
He retired as senior editor from the department in 1988.
Sharma remained associated with many prominent poets and writers of the country like Suryakant Tripathi "Nirala" and was also a famous film critic.
Sharma was also associated with radio rural forum, a radio programme of the public relations department and gave his valuable services in preparation of developmental stories while working in film division of the department.
Several media organisations including Indian Media Centre (IMC) and Shimla Press Club have mourned Sharma's death.