The 54-year-old was the only child of Elvis Presley and Priscilla Presley.
Priscilla confirmed the "devastating" news after earlier asking for prayers.
"It is with a heavy heart that I must share the devastating news that my beautiful daughter Lisa Marie has left us," Priscilla said in a statement.
"She was the most passionate, strong and loving woman I have ever known."
The announcement came hours after Lisa Marie was rushed to the hospital on Thursday (local time).
Los Angeles County paramedics attended a home in Calabasas following a report of a woman in full cardiac arrest, according to a spokesman for the county's fire department.
Property records indicate Lisa Marie was a resident at that address.
Lisa Marie was born in 1968 and is the owner of her father's Graceland mansion in Memphis.
She was nine years old when Elvis died at Graceland in 1977, from a heart attack, aged 42.
Attended Golden Globes two days before death
Lisa Marie attended the Golden Globes earlier this week to watch actor Austin Butler win best actor in a motion picture — drama for his portrayal of Elvis.
Butler paid tribute to Lisa Marie and Priscilla in his acceptance speech on stage.
"The Presley family, thank you guys for opening your hearts, your memories, your home to me," he said.
"Lisa Marie and Priscilla, I love you forever."
During an interview on the red carpet with Entertainment Tonight, Lisa Marie said Butler's performance was "mind-blowing".
Released three albums, married Michael Jackson
Her own music career began with a 2003 debut album, To Whom It May Concern, followed by a second album, Now What, in 2005.
Both hits made the top 10 of the Billboard 200 album chart.
Her third album, Storm and Grace, was released in 2012.
Presley married musician Danny Keough in 1988, with whom she had two children.
Weeks after her divorce to Keough, she married Michael Jackson.
However, the two announced their separation in 1995 and their divorce was finalised the next year.
In 2002, she had a short-lived marriage to actor and film producer, Nicolas Cage, with their divorce finalised in 2004.
She married her guitarist, music producer and director, Michael Lockwood, in 2006 and the couple welcomed twin girls in 2008.
She had four children. Her only son, Benjamin Keough, died by suicide in 2020 at the age of 27.
Her daughter Riley Keough, 33, is an actress and her twins, Harper and Finley Lockwood, are 14.
Photo Lisa Marie Presley with then-husband, Michael Jackson, in Budapest in 1994.(Reuters: Stringer)