She was 86.
Devi was admitted to a private hospital in Chennai after she had complained of breathing difficulties on January 11.
In a career spanning more than six decades, Devi acted in Telugu, Hindi, Tamil and Kannada movies.
Devi, who acted in a number of films starring late N T Rama Rao and Akkineni Nageswara Rao, immortalised the mythological role of Sita in the movie 'Lavakusa'.
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Married to noted film music director Adinarayana Rao, who passed away earlier, the couple also produced several movies.
Andhra Pradesh Chief Minister N Kiran Kumar Reddy, Telugu Desam Party (TDP) Chief N Chandrababu Naidu and YSR Congress president Y S Jaganmohan Reddy condoled Devi's death.
Recalling her performance in movies like 'Lavakusa', 'Bhakta Prahlada' and 'Bhakta Tukaram', Reddy said Devi was a household name in Andhra Pradesh.