He was 82.
"He lived like a king. He did not hurt anyone. He passed away peacefully with happy memories," his son and prominent Telugu actor Jagapathi Babu told reporters.
Born in Krishna district of coastal Andhra Pradesh, Prasad made over 30 films, including a few in Hindi and Tamil, in a career spanning about 50 years.
Prasad was close to veteran Telugu actor and Dadasaheb Phalke Award recipient Akkineni Nageswara Rao and made many films with him.
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He was also the recipient of other prestigious awards like Raghupathi Venkaiah award of the undivided Andhra Pradesh.
Prasad had dedicated the twilight years of his life to spiritualism and spent a lot of time in the temple complex at Film Nagar here.
Andhra Pradesh Chief Minister N Chandrababu Naidu, his Telangana counterpart K Chandrasekhar Rao, a number of film personalities and YSR Congress President Y S Jaganmohan Reddy condoled his death.