Her death from cancer was announced Saturday by her daughters, Kidada and Rashida Jones, who said in a joint statement to the Los Angeles Times, "She made her journey peacefully with her daughters and nieces by her side. We feel so lucky for every moment we spent with her."
Lipton rose to fame as undercover "hippie cop" Julie Barnes in the hit counterculture series The Mod Squad, which ran from 1968 to 1973. The role launched a young Lipton to "it girl" status and earned her four Golden Globe nominations, including a win in 1971.
Lipton, who was married to music producer Quincy Jones from 1974 to 1990, largely stepped away from the spotlight to raise their daughters but returned to acting following their divorce. She landed the role of Norma Jennings in David Lynch's cult TV series Twin Peaks, a role she later reprised in the 2017 revival.
Along with fellow original cast member Clarence Williams III, Lipton made a cameo appearance in the 1999 Mod Squad film. Her other recent film credits include When in Rome and A Dog's Purpose, as well as TV shows like Alias and Crash.
Lipton revealed in her 2005 memoir Breathing Out that she had been diagnosed with colon cancer the previous year and had been treated for it.
In a statement, her daughters said, "Peggy was and will always be our beacon of light."