Takhti was found dead in his hotel room on January 7, 1968. The Iranian government officially proclaimed his death a suicide. However, some claim that he was murdered because of his political activities against the Pahlavi regime, accusing SAVAK, the Iranian intelligence agency at that time. Because he was a national hero his funeral, organized by Hossein Towfigh, editor in chief of the late Towfigh magazine, drew hundreds of thousands of mourners. Towfigh magazine issued a special edition of their popular weekly magazine where they caricatured Takhti with angel wings flying high above the throngs of Iranian mourners at his own funeral with a caption that read "Don't cry for me, cry for your own plight." Towfigh magazine was shut down by the Shah for several months after printing this cartoon. He is buried at Ebn-e Babooyeh cemetery in Southern part of Tehran, near Shahr-e Ray, where he is commemorated every year by his fans.