Prue's death was the eventual consequence, in the show's third season finale, of a series of events that involved magic becoming exposed, time being turned back, and the sisters being tricked by the Source of All Evil After a battle between Piper, Prue, and the demon Shax next to the Manor was caught on tape by a television crew filming in the street, magic, and both the world of witches and demons was exposed to the general public, something which was to be avoided by both good and evil at all costs.

After Piper was killed by an aggressive "witch-wannabe," and Prue was ordered to be shot by special forces, there was no other choice for Leo, Phoebe and Cole than to try to make a deal with the Source of All Evil, which was attempted by Cole. The Source agreed to authorize the demon Tempus to turn back time by one day on Earth.

The Source's trick was that while Prue and Piper, defending an innocent, were attacked by Shax just like previously, Phoebe, Cole and Leo were stuck in the underworld. When Leo and Phoebe eventually escaped from the underworld, they arrived in time for Leo to heal Piper. Whether Prue was already dead or dying while he healed Piper has never been cleared up in the Season 4 premiere. According to her obituary, she died on a Thursday.

It is believed that Prue would have died regardless, even if time hadn't been reset - government agents had taken over the hospital where Piper's body and Prue were, and they were ordered to kill her. Just as a bullet was about to strike Prue's face, time rewound. Prue had a Wiccan funeral.