Fonda's family released a statement to The Blast revealing he died at his Los Angeles home surrounded by his loved ones.
"In one of the saddest moments of our lives, we are not able to find the appropriate words to express the pain in our hearts. As we grieve, we ask that you respect our privacy," the statement continued.
His famous sister, Jane Fonda, released her own statement saying, "I am very sad. He was my sweet-hearted baby brother. The talker of the family. I have had beautiful alone time with him these last days. He went out laughing."
He was 79 years old.
Hollywood is mourning the loss of legendary actor Peter Fonda.
Kate Hudson shared a tribute to the star on social media.
Posting an iconic photo of Fonda, she made sure the famous family knew she was thinking about them.
"Sending love to the Fondas and friends,” Hudson wrote.
Emmy winning director Ava DuVernay posted a silly picture with Fonda from 2012 and wrote, "Rest In Peace, Kind Sir."
Kathy Griffin shared a lengthy tribute to her friend.
Reliving the moment they met over 10 years ago, she said, "he went out of his way to come up to me" and encouraged her to "keep at it" and "keep doing my thing, man."
Sharing their bond and inner jokes together, Griffin admitted, "I loved it when he would call me 'man.'"
Adding, "Every time I had the chance to run into him, he was the same guy."
The comedian ended her tribute by imagining what their next meeting would have been like if he was still here.
Revealing they'd "talk about politics" and "gossip a little bit," she adds, "I would try to make him laugh, and he would probably end with 'Stay cool, man.'"
Peter Fonda was the son of actor Henry Fonda and the brother of actress Jane Fonda. He had two children, including actress Bridget Fonda.
As The Blast reported, his family confirmed he passed away on Friday morning after suffering respiratory failure due to lung cancer.