NSW Health said the woman, who was in her 70s and among the first group of people infected on the ship, died in hospital this morning.
There have been 133 diagnosed cases of COVID-19 aboard the Ruby Princess, which docked in Sydney last week.
Of those, 107 are from NSW, and 26 are from interstate.
The woman is the seventh person to die from COVID-19 in NSW.
Australia’s other fatality was in Perth.