The country's first black president had been battling with health issues since suffering from a series of lung infections, and passed away surrounded by his wife Graca Machel, and some of his 3 children, 17 grandchildren and 13 great-grandchildren at his home.
Daughters Zindzi and Zenani Mandela had just met the cast and crew of their father's biographical film Mandela: Long Walk to Freedom, when they received the news. However they insisted that the audience, which included Prince William and Kate, should continue to watch the film as planned.
The announcement was made by South Africa's president, Jacob Zuma.
Appearing on national TV, Zuma praised the Mandela family for 'sacrificing so much so our people could be free', adding:
"Our nation has lost its greatest son.
"Our thoughts are with the South African people who today mourn the loss of the one person who more than any other came to embody their sense of a common nation.
"Our thoughts are with the millions of people across the world who embraced Madiba as their own and who saw his cause as their cause.
"This is the moment of our deepest sorrow. Our nation has lost his greatest son. Yet what made Nelson Mandela great was precisely what made him human - we saw in him what we seek in ourselves and in him we saw so much of ourselves."
Mr Mandela will initially be given a state funeral, before being given a traditional ceremony in his home town, and, in accordance with his wishes, laid to rest on an Eastern Cape hillside which forms part of his estate.