In his later years, Zeppo faced various health challenges. He managed his health issues with the support of his partner and medical professionals.

Zeppo Marx died of lung cancer in Palm Springs, California, at the age of 78. His death marked the end of an era for the Marx Brothers and the world of comedy. He was cremated, and his ashes were scattered in the Pacific Ocean.

Zeppo's contributions to the Marx Brothers' success have been increasingly recognized over time. While he may have been overshadowed by his brothers' comedic personas, his role as the straight man and his later entrepreneurial achievements are now appreciated as integral parts of his legacy.