On August 31, 1997, he died in a car accident in Paris, France, together with Diana, Princess of Wales, who was his lover at the time. Their brief relationship was marked by controversy when another woman, a former model, brought a breach of promise suit, claiming to have been affianced to al-Fayed and abandoned for Diana.
In the media frenzy following the car crash, there was much speculation about al-Fayed's character, particularly with respect to his choice of female companions and his motives for involvement with the late Princess of Wales.
His father erected a memorial to Dodi and Diana at Harrods on April 12th, 1998.