On December 6, 2004 the doctor called and suggested Chalker should be rushed to the hospital because of leg pains and heavy breathing while walking. Chalker was later diagnosed with congestive heart failure on December 7, 2004. He was hospitalized in critical condition, upgraded to stable on December 9, though he didn't regain consciousness
until December 15. After several more weeks in deterioriating condition, and being transferred to different hospitals, he died on February 11, 2005 of kidney failure in Bon Secours of Baltimore, Maryland.
Chalker's awards include the Dedalus Award (1983), The Gold Medal of the West Coast Review of Books (1984), Skylark Award (1985), Hamilton-Brackett Memorial Award (1979), as well as others of varying prestige. He was a nominee for the John W. Campbell Award twice and for the Hugo award twice. He was awarded the Phoenix Award by the Southern Fandom Confederation on April 9, 2005.
He is perhaps best known for his Well World series of novels, but also wrote many other novels (most, but not all, part of series) and at least nine short stories. Many of his works involve some physical transformation of the main characters. For instance, in the Well World novels, immigrants to the Well World are transformed from their original form to become a member of one of the thousands of sentient species that inhabit that artificial planet. The Wonderland Gambit series resembles traditional Buddhist jataka-type reincarnation stories set in an SF environment. At the time of his death, Chalker left one unfinished novel, Chameleon.
Chalker was also the coauthor (with Mark Owings) of The Science Fantasy Publishers (1991, updated annually), published by Mirage Press, Ltd. (Hugo Award nominee, 1992).