Nandgaonkar was suffering from Alzheimer's disease and related ailments for the past three years, his daughter-in-law Suhasini Prashant Nandgaonkar said.
He had been in the Bombay Hospital for the past six months where he died this (Saturday) morning, she said.
Nandgaonkar is survived by his wife Vrinda, sons Prashant and Milind, daughter Sharmila, and grandchildren.
The funeral will be held at the Khar crematorium later Saturday.
In his career with the Marathi film industry and the literary world spanning over four decades, Nandgaonkar penned hundreds of poems, plays, lyrics and composed music.
He had penned the song "Ya Duniyemadhye Thambaayela Vel Konala", which was sung by cricket legend Sunil Gavaskar.