The dog, who lived in Sewell, N.J., passed away Thursday morning at the age of 8, CNN reported.
His owner, Karen Quigley said she was unsure what the cause of death was, but that he had recently fallen ill.
"The best part was he did not suffer, he was in my arms and with me," Quigley said
In 2007, judges at the World's Ugliest Dog Contest named Elwood the winner of the competition.
"For a little dog he touched a lot of lives in his short time He did a lot of things," Quigley said Saturday. "I couldn't be more proud that people who haven't met him loved him ... I couldn't be more proud."