He was 53 and is survived by wife and two sons.
Satyanarayana, who directed Amitabh Bachchan-starrer 'Suryavansh' (Hindi), died of heart attack at a private hospital. He had been suffering from cancer for the last two years and was undergoing treatment but the cardiac attack was sudden, they said.
The director, who started his career with 'Chevilo Puvvu', made about 50 films in a career spanning two decades.
Though his debut movie was a flop, his second film 'Prema Khaidi' went on to become a big hit and he never looked back.
Though he was initially criticised for double entendres in his films, Satyanarayana subsequently made clean comedy flicks.
An assistant to late renowned Telugu director Jandhyala, Satyanarayana was known for his amusing movie titles and rib-tickling comedies.
Some of his super-hit comedy and entertaining films include 'Appula Apparao', 'Jambalakidi Pamba', 'Abbayi Garu', 'Alibaba Aradajanu Dongalu', 'Hello Brother', 'Bendu Apparao R.M.P'.
He made films with almost all the leading heroes of the Telugu film industry like Chiranjeevi, Nagarjuna, Venkatesh and Srikant.
Satyanarayana's two sons Aryan Rajesh and 'Allari' Naresh are also popular cinestars. He also produced several films and the last movie was 'Katti Kantarao' with Naresh in the lead.
His native place is Korumamidi village near Nidadavole in West Godavari district in coastal Andhra Pradesh.