He was 86.
Talwandi is survived by his wife, two sons and two daughters.
The Akali leader breathed his last at a private heart centre here at 11.10 AM, doctors said.
He was also a minister of state in the first non-Congress government in Punjab in 1967. He was elected to Lok Sabha from Ludhiana in 1977.
The veteran Akali leader would be cremated at his native village Talwandi near Raikot in this district tomorrow, his family said.