He was 56 and is survived by his wife and three sons.
He was admitted to the Apollo hospital on June 22 in serious condition.
He was diagnosed with acute Myelogenous Leukemia (blood cancer) and had a massive intracranial (bleeding within the skull).
Hailing from Anakapalli in Visakhapatnam district, Rao was also the general secretary of Movie Artiste Association (MAA).
As news of his death spread, several film actors, directors and producers rushed to the hospital and paid tributes to him.