The official statement from Buckingham Palace said: "The Queen died peacefully at Balmoral this afternoon. The King and The Queen Consort will remain at Balmoral this evening and will return to London tomorrow."
After the monarch was placed under medical supervision on Thursday morning, her eldest two children Prince Charles and Princess Anne, who were already in Scotland, rushed to be with their mother at her bedside.
WATCH: The Queen's 70-year reign in pictures
Prince Harry was photographed arriving separately, several hours later that evening.
The Duchess of Cambridge remained in Windsor, as her and Prince William's three children, Prince George, Princess Charlotte and Prince Louis were attending their first day at their new school. Duchess Meghan also stayed in London, having cancelled her engagement at the WellChild awards.
The Queen at Balmoral Castle in September 1952
Following Queen Elizabeth II's passing, her coffin is set to lie in state in the Palace of Westminster to allow the public to pay their last respects.
The closed coffin will be placed on view inside Westminster Hall in the Palace of Westminster, with hundreds of thousands of people expected to visit to say goodbye. Because the Queen died in Balmoral in Scotland, she could also lie in state at St Giles' Cathedral in Edinburgh, which would allow the public to honour the monarch there, too.
The Queen, Prince Philip, Prince Charles and Princess Anne at Balmoral in 1953
It has long been a tradition of the British royal family to pass away at home surrounded by loved ones. Balmoral was particularly special to the Queen who once called the castle, "my dear paradise in the Highlands."
Her Majesty spent every August to October at her Aberdeenshire home, frequently inviting members of her family to join her. Balmoral has been in the British royal family since 1852 and is set amongst acres of beautiful countryside. The village of Crathie is six miles away and Inverness is just under two hours away.
The Queen met Liz Truss on Tuesday
On Tuesday, the Queen broke tradition by appointing the new Prime Minister Liz Truss at her Scottish home. By Thursday afternoon the Palace had released a statement that read: "Following further evaluation this morning, the Queen's doctors are concerned for Her Majesty's health and have recommended she remain under medical supervision. The Queen remains comfortable and at Balmoral."
Preparations are now underway for the Queen's funeral, which will take place at Westminster Abbey in London and is likely to involve the entire royal family.
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