56-year-old Haseena suffered severe chest pain and breathed her last on Sunday afternoon at the Habib hospital in South Mumbai.
Mafia fugitive Dawood's younger sister was also known as Haseena 'Aapa' and was involved in various criminal cases including land grabbing and extortion cases.
She was a resident of Gordon Hall apartments at Nagpapda area of South Mumbai and was also referred to as "the lady don of Nagpada".
In 2006, she lost her son- 23-year-old Danish Parkar in a road accident on Goa-Mumbai highway when he was returning from Goa along with his friends.
In 1991, her husband Ismail Parkar was shot dead by a gangster group Arun Gawli's gang and Dawood had took revenge of her sister's killers at the infamous JJ hospital shootout.
Haseena was also involved in Slums Rehabilitation Authority (SRA) project case. Though officially she was not directly implicated in any underworld activities, it is believed that in parts of south Mumbai, nothing moved without her nod.
In 2007, Haseena had been declared as absconding in the SRA scheme case and the Mumbai police had fanned out to neighbouring Thane, Hyderabad, Bangalore and Hyderabad in search of her.
She has a daughter whose whereabouts are not known.
Dawood, who reportedly used to regularly keep in touch with his sister, will attend her funeral or not is yet to be seen.
Dawood Ibrahim was declared a global terrorist by United States in 2005.