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Queen Elizabeth released a statement saying she is "deeply saddened" by the death of her aunt.
Princess Alice, the Duchess of Gloucester, died in her sleep at Kensington Palace Friday night, a palace official said.
The Union Jack was flying at half mast at Buckingham Palace Saturday morning in tribute. Funeral arrangments have yet to be announced.
The Duke and Duchess of Gloucester at Buckingham Palace after their wedding in 1935 (AP file photo)
Lady Alice Christabel Montagu Douglas Scott was born on Christmas Day 1901. She was the third daughter of the seventh Duke of Buccleuch and the widow of Prince Henry, third son of King George V and Queen Mary.
She was known in Britain for helping boost morale during the Second World War and for her charitable work.
Princess Alice was the second member of the royal family to reach her centenary, after the Queen Mother, who died in March 2002 at the age of 101.
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