She was 80. She died on Monday at her residence in suburban Jogeshwari here.
"Mubarak Begum is no more with us. She passed away at 9.30 pm at her residence in Jogeshwari. She was unwell from quite sometime," a family member told PTI.
Begum, who gave scores of Hindi film songs and ghazals mainly during 1950s-70s, had not been keeping well for the last few years.
She made her Bollywood singing debut with 1949 film "Aiye" in which she had a solo track, "Mohe Aane Lagi Angdai Aaja Aaja", and "Aao Chale Sakhi Wahan" with melody queen Lata Mangeshkar.
Through the 1950s and 1960s, Begum worked with the best music directors in the film industry-- S D Burman, Shankar Jaikishan and Khayyam-- on movies that starred screen legends like Sunil Dutt, Nargis and Rajendra Kumar.
She sang "Woh Na Aayenge Palat Kar" in Bimal Roy's Devdas with music by Burman. Roy used her voice once again in Madhumati (1958), where she sang "Hum Haal E Dil Sunaenge" for music composer Salil Choudhury.
"Kabhi Tanhaiyon Mein Hamari Yaad Aayegi", the title song of Tanuja-starrer "Hamari Yaad Aayegi", remains one of Begum's most remembered tracks.
"Neend Ud Jaaye Teri", "Mujh ko Apne Gale Lagalo" and "Humein Dum Daike" with Asha Bhosle are among her other known songs.
"Saanwariya Teri Yaad Mein" from 1980 comedy "Ramu To Diwana Hai" was one of her last tracks.
In 2011, the Maharashtra government had sanctioned a financial aid of Rs one lakh for treatment of the singer.
Her last rites will take place today, family sources said.