Annette Charles, who played racy dancer Cha Cha DiGregorio, died on Wednesday at her home in Los Angeles.
The brunette beauty was 63-years-old and had been suffering from cancer after being diagnosed a few months ago.
A representative for the actress confirmed to TMZ that she died from complications relating to the disease.
Cha Cha was the girl who stole Danny Zucco (John Travolta) from Sandy (Olivia Newton John) on the dancefloor during the school dance and was the on/off girlfriend of villain Craterface (Dennis Stewart).
Her 'hand jive' was one of the film's most memorable dance moves.
In the iconic film ,she was referred to as 'the best dancer at St Bernadette's... with the worst reputation'.
Before her role in Grease, Annette had a highly successful television career appearing in several long running series in the 1970s including Emergency! Barnaby Jones and The Bionic Woman.
After retiring from acting in 1978, she became a speech professor and taught at the California State University in Northridge.