Since 1976, Ahmed Rushdi was a heart patient and his doctors advised him to abstain from singing but Rushdi refused by saying that music was his life. When he had a second heart attack in 1981, he was composing a musical album in the voice of singer "Mujeeb Aalam". On the night of April 11, 1983, he had a third heart attack. He was immediately taken to the hospital but pronounced dead by the doctors. He was 48. Rushdi was buried at Sakhi Hassan Graveyard, Karachi. His last non movie song was "Aaney walo suno" which was a duet with "Mehnaz".