In 1957 she died in Shanghai in a mental asylum at the age of 39 during the Anti-Rightist Movement. A possible cause of death may be encephalitis following a nervous breakdown.

Zhou Xuan was survived by 2 sons, Zhou Wen and Zhou Wei, born of different fathers. According to Zhou Wen's biography, the younger son, Zhou Wei, was the son of Tang Di, while the father of Zhou Wen is unknown.

Zhou Wei currently lives in Toronto performing at times in the TTC subways, and participating in various musical projects, including teaching. He is known as a flautist. He has two daughters, both musicians. The elder of the two, Zhou Xiaoxuan, is a classical pianist trained at Concordia University and now living in Beijing.