Sadhana, who is credited for introducing the fringe hairstyle in Indian film industry, died at a private hospital in Mumbai, sources said.
She was 74 and is survived by her foster daughter.
"Sadhana breathed her last at her home this morning," friend and BJP city spokesperson Shaina N.C. told IANS.
Her body was taken to her residence in suburban Mumbai where Bollywood personalities, including her former colleague and friend Waheeda Rehman, went to pay their last respects.
In December last year, Sadhana underwent a surgery due to her deteriorating health.
Born in 1941 in a Sindhi family, she was named after her father's favourite actress Sadhona Bose. Her father and actor Hari Shivdasani were brothers. Hari's daughter is actress Babita Kapoor.
Sadhana was the only child and and her mother home-schooled her until she was eight. In 1955 she played a chorus girl in the song "Mur mur ke na dekh mur mur ke" in Raj Kapoor's "Shree 420". She made her full-fldged film debut in the first ever Sindhi film "Abana".
Some of her memorable films include "Love in Simla", "Hum Dono", "Ek Musafir Ek Hasina", "Asli-Naqli", "Mere Mehboob", "Woh Kaun Thi", "Mera Saaya" and "Waqt".
