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I know this sounds like an obvious question about Thor: Ragnarok and I know Thor says "Odin is dead" but we don't see him get killed, instead just seems to float away in the wind mysteriously.

Odin doesn't get killed but he does fade away into the wind but how did he die and is he really dead?

  1. Asgardians gods are immortal so he didn't die of old age.

  2. He appears to Thor and tells him that "He isn't the God of Hammers.." etc..

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  • 2
    Passed to another plane of existence...Guess they took a leaf out of Obi-Wan Kenobi's book.
    – Paulie_D
    Commented Oct 27, 2017 at 22:05
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    I would like to give my interpretation to this question, but I've first asked another to see whether I'm just clutching straws
    – BlueMoon93
    Commented Oct 31, 2017 at 14:46
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    Presumably, while under Loki's spell he missed an Odinsleep, and then it was too late.
    – OrangeDog
    Commented Nov 3, 2017 at 14:48
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    Asgardians are not immortal. They have exceedingly long lifespans, but they cannot live forever.
    – Mage Xy
    Commented Nov 13, 2017 at 21:11
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    The same dispersion effect happens to the bodies at the funeral in Thor 2.
    – OrangeDog
    Commented Nov 19, 2017 at 19:22

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Since the movie is not the same as the comics, I'm afraid there is no official answer to this question, as this is not explained in the movie itself. However, using some common sense and knowledge of the Marvel universe, I believe we can reach a good enough guess.

What we see in the movie as Odin "fading away into the wind" is actually Odin transforming himself into pure energy/Odinforce, then making his way into Valhalla to reunite with his wife Frigga. (Idea taken from here, but like I said it does make sense and I can't think of a better explanation.)

In the comics, when Odin dies he pass the Odinforce to Thor. While not explicitly shown in the movie, Thor does become utterly powerful which hints he did get that power nonetheless.

As for the questions in the question:

Asgardians gods are immortal so he didn't die of old age

True, he didn't die of old age, he chose to leave the world of the living. (In the comics he's doing this on purpose to fight Surtur and prevent him from reentering the world.)

He appears to Thor and tells him that "He isn't the God of Hammers.."

While in Valhalla he can still communicate, as he's not really "dead".

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