Egan died this morning at his home in Alice Springs, the outback town he loved dearly.
Known for his larger-than-life personality and for popularising the beer carton as a musical instrument, he was surrounded by his large family at the time of his passing.
He was also known as a vocal supporter of Aboriginal land rights during the 1960s and 1970s, including penning the song Gurindji Blues with former Australian of the Year Galarrwuy Yunupingu.
In a statement, his wife Nerys Evans and son Greg Egan told the ABC he "lived a big and very generous life spanning 93 years. We will miss him enormously".
"It is with sadness but also great pride that Nerys Evans and the Egan family mark the passing of our beloved partner, father, grandfather, great grandfather and best mate," they said.
"Ted passed peacefully at home this morning, as was his wish.
"We shared Ted with Territorians, Australians and the wider world."
Northern Territory Treasurer and Alice Springs politician Bill Yan was among those to lead the tributes to Egan, describing him as a "legend, a Territory icon and an absolute gentleman".
"Ted was such a strong advocate for the Territory and its people, he will be missed by all of us," he said.
Egan was a pioneer of Australian folk and country music, a travelling troubadour in the tradition of his early counterparts like Slim Dusty — often with his tongue in his cheek.
Fellow musicians have been among those to voice their heartbreak over his death.
Golden Guitar-winning country musician Matt Scullion paid tribute to Egan on social media, describing him as "my hero and good mate".
