He leaves behind his wife and two sons.
His family said that he suffered a heart attack four days ago and was rushed to a private hospital where he breathed his last in the morning. Ali Ejaz had suffered a paralysis attack some 11 years ago.
Many of his showbiz colleagues, friends and fans attended his funeral near Ayubia Market, Muslim Town, in the afternoon.
Ali Ejaz was born in 1941 in Qila Gujjar Singh, Lahore.
Known for his versatility in acting, Ali Ejaz started his showbiz career with theatre in the 1960s.
Pakistan Television was his second home where he acted in a number of plays and trained a generation of artistes. He was awarded Pride of Performance in 1993.
His first film was Insaniyat. He acted in over 100 films and his pairing with actress Anjuman and comedian Nannha (Rafi Khawar) was very popular in
the 1980s.
His TV plays Khawaja and Sons, Sona Aur Chandi and Lakhon Mein Teen (with Qavi Khan and Athar Shah Khan Jedi) became household names. Among his popular films were Dada Ustad, Bhaiyan Di Jori, Yamla Jutt, Bad Nalo Badnam Bura, Ishq Mera Naam, Sohra Tay Jawai, Sala Sahib, Laila Majnoon, Athra Putar and Sajjan Dushman and Dubai Chalo.
TV serial Khawja and Sons and film Dubai Chalo are regarded as his best.