On 25 March 1975 King Faisal was shot point-blank and killed by his half-brother's son, Faisal bin Musaid, who had just come back from the United States. The murder occurred at a majlis (literally 'a place for sitting'), an event where the king or leader opens up his residence to the citizens to enter and petition the king.[76]

In the waiting room, Prince Faisal talked to Kuwaiti representatives who were also waiting to meet King Faisal. When the Prince went to embrace him, King Faisal leaned to greet his nephew in accordance with Saudi custom. At that instant, Prince Faisal took out a pistol and shot him. The first shot hit King Faisal's chin and the second one went through his ear. A bodyguard hit Prince Faisal with a sheathed sword. Oil minister Zaki Yamani yelled repeatedly not to kill the prince.[77]

King Faisal was quickly taken to a hospital. He was still alive as doctors massaged his heart and gave him a blood transfusion. Their efforts were unsuccessful, and King Faisal died shortly afterward. Both before and after the attack the prince was reported to be calm. Following the killing, Riyadh had three days of mourning during which all government activities were suspended.[77]

One theory for the murder was avenging the death of Prince Khalid bin Musaid, the brother of Prince Faisal bin Musaid. King Faisal instituted modern and secular reforms.

He is believed to have been assassinated for standing against the US and Western Europe with his hostility over the last oil embargo and anti israel policies.