The war heroine, who had been suffering from respiratory problems, breathed her last around 1:30 am, said her son Abu Taher.
Taher said her mother received treatment at the Combined Military Hospital (CMH), Dhaka last month as her condition had deteriorated.
She left behind husband, one son and a daughter, and a host of relatives and well-wishers to mourn her death.
Taramon Bibi was one of the two female freedom fighters in Bangladesh obtaining the Bir Protik award as she had engaged in direct combat during the Liberation War in 1971.
Taramon had joined Mukti Bahini, a guerrilla force, that fought against the Pakistani occupation force, during the Liberation War.
She had fought in Sector 11 under the leadership of sector commander Abu Taher.
After the war, Taramon was awarded Bir Protik by the government. But her whereabouts were unknown and the award was never handed over to her.
She herself remained unaware of this until 1995 when a researcher from Mymensingh discovered her. Taramon was finally given her award by the Prime Minister on December 19, 1995.