In the spring of 1968, while on vacation in the Bahamas, Carlson had his first heart attack. He was gravely ill, but hid this from his wife, embarking on a number of unexpected household improvements and concealing his doctor's visits. On September 19, 1968, Carlson died of a heart attack in the Festival Theatre, on West 57th Street in New York City, while watching the film "He Who Rides a Tiger". Dorris arranged a small service in New York City; Xerox held a much larger service in the corporate auditorium in Rochester on September 26, 1968.