Roxanne Taylor, 58, of Atlanta, Georgia, was wanted after she robbed multiple drug stores over the past two weeks, most recently on Tuesday.
Ms. Taylor was spotted in a Wendy's drive-thru by an unidentified person who then called the police.
Officers then tried to stop Ms Taylor as she exited the fast food driveway, but instead she fled in a her gold Jeep Liberty, reports the Atlanta Journal Constitution.
After she was involved in a minor traffic accident officers heard a gunshot, returned fire and killed her with multiple bullet wounds.
No police were injured.
Witnesses saw two bullet holes in the Jeep's windshield and a blown out driver's side window, and a shattered rear window, reports the AJC.
Over the past few weeks Taylor had repeatedly been seen on CCTV cameras across Georgia entering pharmacies, taking out a hand gun and demanding money from cashiers.
As a suspect she was described as being between 60 and 70 years old, 5ft 6 inches tall, and weighing between 120 and 130lbs.
She wore sunglasses beneath a black University of Georgia baseball cap during the robberies and has puffy, swollen cheeks.
The Grandma Bandit's latest hit was at a Rite Aid pharmacy on Howell Mill Road in Atlanta just before 10am on Tuesday.
Police said she strode into the store before revealing her gun, demanding money and fleeing in a tan or gold Jeep Liberty.
She was also wanted for the recent early morning robberies of another Rite Aid in the area, a Walgreens and a CVS Pharmacy on May 12, 14 and last Friday. Source