Sooda Akhter, resident of Turkipora area in the district, was hit by an army vehicle in main Bandipora town, 55 km from here, causing critical injuries to her, police said.
She was rushed to hospital where she succumbed to injuries.
Police registered a case and seized the vehicle, the spokesman said, adding the driver of the vehicle has also been arrested.
The death of the woman sparked angry protests with locals demanding stern action against the erring driver.